An investment made in the stock market decreased at a rate of 12% per year for 25 years . What is the current value of the 100,000 investment? Include your calculations in your final answer

$73947.52

Step-by-step explanation:

The investment decreases in value, so the common ratio r is (1.000-0.012), or 0.988. Thus, A = $100,000* (0.988) ^25 = $73947.52 is the current value, after 25 years.

this is the formula: v = the value of investment at the end of the time period

p = the principal amount (the initial amount invested)

r = the annual interest rate

n = the annual frequency of compounding (how many times a year interest is added)

t = the number of years the money is invested

^ means raise to the power of