12,600 decreases 9% per year in 10yrs i would have......?

Question

now i think im suppose to do 100% x 9%= 0.09, then do i do 12,600(0.09)^10??? im confused on the next steps.....anyone care to help me thru the steps to get to the answer?

Answer 1

The final value will be:

(starting value)*(rate)^(time)

12,600*(0.91)^10 = 4906.64

The important thing is the rate. You're decreasing by 9%, which when you multiply is a deciaml value of 0.91

Answer 2

Your capital would be 12,600*(0,91)^10=$4,906.64