The equation A=2500(0.96)t represents an account balance t years after the account was created. Which statement is correct?​ A The accoun

Question

The equation A=2500(0.96)t represents an account balance t years after the account was created. Which statement is correct?​ A The account balance will decrease 0.04% each year. B The account balance will increase 0.04% each year. C The account balance will decrease 4% each year. D The account balance will increase 4% each year.

in progress 0
Mia 2 weeks 2021-09-09T02:13:56+00:00 1 Answer 0

Answers ( )

    0
    2021-09-09T02:15:51+00:00

    Answer:

    C

    Step-by-step explanation:

    Here, we want to deduce what would happen to the account balance given the above equation.

    A = 2500(0.96)^t

    This can be re-written as;

    A = 2500(1-0.04)^t

    or more generally as A = 2500(1-r)^t

    where r is our rate

    Now 0.04 is our rate of either increase or decrease, then it is expected to be written as a percentage.

    This means that 0.04 is same as 4/100 or just 4%

    Now, since there is a negative difference between 1 and r in the bracket or let’s say the term in the bracket is less than 1, then what we shall be expecting is a decrease, year in year out

    Thus, the account balance is expected to decrease by 4% each year

Leave an answer

45:7+7-4:2-5:5*4+35:2 =? ( )