Suppose the value of the U.S. dollar decreases 3.1% per year. Find the value of a U.S. dollar, to the nearest cent, in 6.5 years.

Question

 Using the A=Pe^{rt formula of increasing and decreasing} 

Answer 1

A 3.1% decrease indicates a rate of change of 96.9%

 

A = 1(e)^(0.969)(6.5)

A = e^6.2985

A = 0.5438

 

The dollar is "worth" 54 cents.