Answer
(a) Initial investment is $\$ 2500$ and decreases at an annual rate of $4.34 \%$, compounded continuously.
b) The initial value of the investment is $\$ 4600$ and grows by $6 \%$ compounded monthly.
c) The initial value of the investment is $\$ 8000$ and decreases $(50 \%)$ of its value every 14 years.
d) It grows by $250 every year.
Work Step by Step
(a) The initial value of the investment is $\$ 2500$ and decreases at an annual rate of $4.34 \%$ , compounded continuously.
b) The initial value of the investment is $\$ 4600$ and grows by $6 \%$ compounded monthly. Note that $
V=4000(1.005)^{12 t}= 4000(1+6/12)^{12 t}
$
(c) The initial value of the investment is $\$ 8000$ and decreases $(50 \%)$ of its value every 14 years.
(d) The initial value of the investment is $\$ 5000$ in year $t=10$ and grows by $\$ 250$ every year.
