In a recent stock market downturn, the value of a $5,000 stock is decreasing at 2. 3% per month. This situation can be modeled by the equation A(t) = 5,000(0. 977)^12t, where A(t) is the final amount and t is time in years. Assuming the trend continues, what is the equivalent annual devaluation rate of this stock (rounded to the nearest tenth of a percent) and what is it worth (rounded to the nearest ten dollars) after 1 year?


A. 24. 4% and $3,780. 00

B. 75. 6% and $3,780. 00

C. 27. 6% and $1,380. 00

D. 72. 4% and $3,620. 0