The booster club raised $30,000 for a sport 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. Show all work so I can understand please and don't ask me questions cause it won't let me reply to you all.

Question

The booster club raised $30,000 for a sport 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. Show all work so I can understand please and don't ask me questions cause it won't let me reply to you all.

anonymous · Answer

Hello again. 

This time we are looking for exponential decay. That means that the number in the parenthesis has to be less than 1. In this case, we are looking to decrease the amount by 5% every year. to model this function, you wold write 30000(.95)^4. When we do the steps, we get $24435.19 Hope this helps.. Feel free to ask more