Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 9 - Section 9.3 - Logarithmic Functions and Models - Exercises - Page 657: 38

Answer

The investment continually decays with a rate of $ 34.6\%$ per year.

Work Step by Step

Growth/decay models have the form $Q(t)=Q_{0}e^{\pm rt}\quad \quad $ ($Q_{0},k$ both positive) with +r for growth, -r for decay. Using the half-life formula, $\quad t_{h}r=\ln 2$, with the given $t_{h}=2$, we have: $2r=\ln 2$ $r=\displaystyle \frac{\ln 2}{2}\approx 0.34657$ or, $ 34.6\%$ Thus, the investment continually decays with a rate of $ 34.6\%$ per year.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.