The Booster Club raised $30,000 for a sports fund. No more money will be placed into the fund. Each year, the fund will decrease by 5%. Determine the amount of money, to the nearest cent, that will be left in the sports fund after 4 years.

Question

anonymous · Answer

5% of $30,000 is $1,500. After 1st year the amount of fund left will be equal to $28,500.   
5% of $28,500 is $1,425. After 2nd year the amount of fund left will be equal to $27,045.
5% of $27,075 is $1,353.75. After 3rd year the amont of fund left will be equal to $25,721.25.
5% of $25,721.25 is $1,286.06. After 4th year the amount of fund left will be equal to $24,435.19.

So, the amount of funds left after 4 years will be equal to $24,435.19.
Sorry if I solved it in a complicated way.