The amount of money in an account may increase due to rising stock prices and decrease due to falling stock prices. Maggie is studying the change in the amount of money in two accounts, A and B, over time.

The amount f(x), in dollars, in account A after x years is represented by the function below:

f(x) = 9,628(0.92)x

Part A: Is the amount of money in account A increasing or decreasing and by what percentage per year? Justify your answer.

Part B: The table below shows the amount g(r), in dollars, of money in account B after r years.

r (number of years) 1 2 3 4
g(r) (amount in dollars) 8,972 8,074.80 7,267.32 6,540.59

Which account recorded a greater percentage change in amount of money over the previous year? Justify your answer.



Answer :

The amount of money in account A is decreasing by 8% per year.

The account that recorded a greater percentage change in amount of money over the previous year is account B.

How to calculate the percentage?

From the information, the amount f(x), in dollars, in account A after x years is represented by the function below:

f(x) = 9,628(0.92)x

Therefore, this shows a decrease and the percentage will be:

= 1 - 0.92

= 0.08

= 8%

The account that recorded a greater percentage change will be:

Account B = (8,972 - 8,074.80) / 8,972 × 100

= 10%

Therefore, B has a higher percentage.

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