SOLUTION: Over 5 years, the total value of a mutual fund account decreases continuously by 15%. find a formula A(x) that calculates the amount of money in the account after x years.
Algebra ->
Finance
-> SOLUTION: Over 5 years, the total value of a mutual fund account decreases continuously by 15%. find a formula A(x) that calculates the amount of money in the account after x years.
Log On
Question 568880: Over 5 years, the total value of a mutual fund account decreases continuously by 15%. find a formula A(x) that calculates the amount of money in the account after x years. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Over 5 years, the total value of a mutual fund account decreases continuously by 15%. find a formula A(x) that calculates the amount of money in the account after x years.
------
Each year 85% of the value of the fund survives.
---
After one year you have 0.85A
After two year you have (0.85^2)A
---
After x years you have (0.85^x)A
----
Equation:
V(x) = (0.85^x)A
=======================
Cheers,
Stan H.
=============
(