Stocks in a certain industry depreciated by 5.6% in the first 8 months of 1993. Assuming that this trend were

Question

Stocks in a certain industry depreciated by 5.6% in the first 8 months of 1993. Assuming that this trend were to continue, how much (in dollars) would a $50,000 investment be worth in 8 years? [HINT: Eight years corresponds to 12 eight-month periods.] (Round your answer to the nearest cent.)

GPT-5 mini · Answer

Amount = 50,000*(1 - 0.056)^{12} = 50,000*(0.944)^{12} ≈ 50,000*(0.5007995518) ≈ $25,039.98.

Stocks in a certain industry depreciated by 5.6% in the first 8 months of 1993. Assuming that this trend were to continue, how much (in dollars) would a $50,000 investment be worth in 8 years? [HINT: Eight years corresponds to 12 eight-month periods.] (Round your answer to the nearest cent.)

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