An investment is losing value at a rate of 2% per year. Your original investment was $1250 three years ago. How much is it worth now to the nearest dollar?

Answer 1

To calculate the current value of the investment, we use the formula for exponential decay: A = P(1 - r)^t, where A is the current value, P is the original investment, r is the rate of decay as a decimal, and t is the time in years. Plugging in the values, we get A = 1250(1 - 0.02)^3. Solving this, the investment is worth approximately $1142.

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Answer 2

It is worth #$1176# to the nearest dollar.

As the investment is loosing value at the rate of #2%# every year,
original value of an investment #I# after #n# years would be
#I(1-2/100)^n=Ixx(0.98)^n#
As original investment was #$1250# three years ago,
its present value is #1250xx0.98^3#
= #1250xx0.9412=$1176.49# or #$1176# to the nearest dollar.
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Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

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