Q:

1. Maria invested $10,000 in the stock market. Unfortunately, the value of her investment has been dropping at an average rate of 3% each year. a. Write the function that best models the situation. b. If the trend continues, how much will her investment be worth in 5 years? c. Given the situation, what should she do with her investment?

Accepted Solution

A:
Answer:Her investment would be $8586 in year 5.Step-by-step explanation:10000* 0.03= $300.10,000- 300 =$9700Year 2.9700*0.03= $2919700-391= $9409Year 3. 9409*0.03=$282.279409-282.27= $9126.74Year 4. 9126.74 * 0.03 = $273.89126.74 - 273.8= $8852. Year 5. 8852 * 0.03 = $265.568852 - 265.56 = $8586C) She should pull off this investment and invest in a more productive company and ensure she diversifies her investment by investing in different companies.