- #1
Jacobpm64
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(a) Niki invested $10,000 in the stock market. THe investment was a loser, declining in value 10% per year each year for 10 years. How much was the investment worth after 10 years?
This one isn't tough:
P = P0at
P = 10,000(0.90)10
P = 10,000(0.348678...)
P = $3,486.78
(b) After 10 years, the stock began to gain value at 10% per year. After how long will the investment regain its initial value ($10,000)?
All right, for this one, I don't know if it means when will the investment get back to $10,000 or when will the $3,486.78 INCREASE by $10,000.
I worked it out as when it would get back to $10,000, but I'm not sure what it's asking for:
P = P0at
10,000 = 3,486.7844...(1.10)t
2.86797... = 1.10t
log2.86797 = tlog1.10
t = 11.054..
11.054 years
Also, should I round that up to 12 years? or what?
Thanks in advance.
This one isn't tough:
P = P0at
P = 10,000(0.90)10
P = 10,000(0.348678...)
P = $3,486.78
(b) After 10 years, the stock began to gain value at 10% per year. After how long will the investment regain its initial value ($10,000)?
All right, for this one, I don't know if it means when will the investment get back to $10,000 or when will the $3,486.78 INCREASE by $10,000.
I worked it out as when it would get back to $10,000, but I'm not sure what it's asking for:
P = P0at
10,000 = 3,486.7844...(1.10)t
2.86797... = 1.10t
log2.86797 = tlog1.10
t = 11.054..
11.054 years
Also, should I round that up to 12 years? or what?
Thanks in advance.