An investment is initially worth $11,100. Write a formula for the function V(t) representing the value of this investment after
t years in each of the following situations:
A) The value decreases by $889 per year.
B) The value increases by $899 per year.
A. V(t) = Vo - 899t.
Vo = Initial value.
B. V(t) = Vo + 899t.
To write a formula for the function V(t) representing the value of the investment after t years, we need to consider the starting value and the change in value over time.
A) Situation where the value decreases by $889 per year:
In this case, the value of the investment decreases by $889 every year. We can represent this as a linear function, where the starting value is $11,100 and the decrease per year is $889. Mathematically, we can write the formula as:
V(t) = 11,100 - 889t
Here, t represents the number of years that have passed. As time passes, the value of the investment decreases by $889 for each year.
B) Situation where the value increases by $899 per year:
In this case, the value of the investment increases by $899 every year. Similar to the previous situation, we can represent this as a linear function. The starting value is $11,100 and the increase per year is $899. Mathematically, we can write the formula as:
V(t) = 11,100 + 899t
Here, t represents the number of years that have passed. As time passes, the value of the investment increases by $899 for each year.