Respuesta :
$16.95
We will solve this question by applying the principle of compound interest. The formula is given as A = [tex]P(1 + r/n)^{nt}[/tex]
Where A is the expected compounded interest
P is the initial money
r is the rate of interest
n is the length of period in concern
if we proceed to solve, we have
A = [tex]20 (1 + 0.05/1)^{1 * 3}[/tex]
A = [tex]20 (1 + 0.05)^{3}[/tex]
A = [tex]20(1.05)^{3}[/tex]
A = 20 * 1.1576
A = 23.15
23.152 - 20 = 3.15
interest is 3.152, and the question says that the price was decreased, so there
20 - 3.15
$16.85
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The decay rate gives the amount by which a quantity is reducing with time
The option that gives the cost of spandex in three years is option d.
d) $17.15
Reason:
Known parameter are;
Amount by which the cost of spandex is predicted to decrease per year for the next 3 years, r = 5%
Current cost of a yard of spandex, P = $20
Required:
Cost of spandex in 3 years
Solution:
The given relationship is the exponential decay of cost with time
The cost of spandex, C, after a given number of years, n, is given by the relation;
[tex]C = P \cdot(1 - r)^n[/tex]
The cost of spandex in 3 years is [tex]C = 20 \times (1 - 0.05)^3 = 17.1475 \approx 17.15[/tex]
The cost of spandex in 3 years will be $17.15
Learn more about exponential decay here:
https://brainly.com/question/17808765
