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Milton has his money invested in a stock portfolio. The value, v(x), of his portfolio can be modeled with the function v(x)=30,000(0.78)^x, where x is the number of years since he made his investment. Which statement describes the rate of change of the value of his portfolio? (1) It decreases 78% per year. (2) It decreases 22% per year. (3) It increases 78% per year. (4) It increases 22% per year.

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allyssamoore90

Answer:

Answer 2

Step-by-step explanation:

If you do 30,000(.78) in a calculator then you end up with 23400. Decreasing by 78% is to much of a decrease and it definitely did not increase.

The statement that best describes the rate of change of the value of the portfolio is it decreases by 22% per year.

What is the rate of change in the portfolio?

The formula that can be used to determine the value of a stock is if it is decreasing is:

FV = P (1 - r)^n

  • FV = Future value
  • P = Present value
  • R = rate of decline
  • N = number of years

Rate of decline = 1 - 0.78 = 22%

To learn more about future value, please check: https://brainly.com/question/18760477

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