Question

The value, V, of Kalani’s stock investments over a time period, x, can be determined using the equation What is the rate of increase or decrease associated with this account?
20% decrease
20% increase
25% decrease
25% increase

Answer 1

The rate of increase and decrease associated with Kalani's stock investments would be a 25% per year increase.

Therefore, the correct option of all the answer choices you listed is: D.

Answer 2

The rate of increase associated with this account as per compound interest is 25%.

What is compound interest?

"Compound interest is the addition of interest to the principal sum of a deposit, or in other words, interest on principal plus interest."

Given, 'V' is the value of Kalani's stock after time period 'x'.

'x' is time period.

The given equation for the value of Kalani's stock after time period 'x' is:

$V \\= 750(0.80)^{- x}\\= 750(\frac{1}{0.80})^{x}\\= 750(1.25)^{x}\\= 750(1 + 0.25)^{x}$

Therefor, the increase in the investment is 25%.

Learn more about compound interest here: https://brainly.com/question/13155407

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