Answer:
[tex]\$1,567.11[/tex]
Step-by-step explanation:
we know that
The equation of a exponential decay function is given by
[tex]y=a(1-r)^x[/tex]
where
y is the value of the investment
x is the number of years
a is the initial value
r is the rate of change
we have
[tex]a=\$5,000\\r=13.5\%=13.5/100=0.135[/tex]
substitute
[tex]y=5,000(1-0.135)^x[/tex]
[tex]y=5,000(0.865)^x[/tex]
Find the amount Amy has at the end of 8 years
For x=8 years
substitute the value of x
[tex]y=5,000(0.865)^8=\$1,567.11[/tex]
