Problem

Suppose that you invest $1000 in shares of a new stock you heard about from a friend. Inst...

Suppose that you invest $1000 in shares of a new stock you heard about from a friend. Instead of gaining value (as you hoped), the stock loses 2% of its value each month.

a. Find a natural growth function V(t) that gives the value of the stock after t months.


b. What is the stock worth after 6 months?


c. If you are unwilling to lose more than $200 on this venture, in how many months must you sell the stock (assuming that it continues to lose value at this rate)?

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Solutions For Problems in Chapter 3.2