For this case we have an equation of the form:
[tex]y = A (b) ^ t
[/tex]
Where,
A: initial amount
b: decrease rate
t: time
In this case we have the following equation:
[tex]V (t) = 11,250 (0.88) ^ t
[/tex]
Where,
t: number of years
Rewriting for the number of months we have:
[tex]V (t) = 11,250 (0.88) ^ {((1/12) * t)}
[/tex]
Where,
t: number of months
For 8 years (96 months) we have:
[tex]V (96) = 11.250 (0.88) ^ {((1/12) * 96)}
V (96) = 4045.888404[/tex]
round to the nearest hundred dollar:
V (96) = $ 4050
Answer:
[tex]V (t) = 11,250 (0.88) ^ {((1/12) * t)}
V (96) = $ 4050[/tex]
