An investment is made in the stock market decreased at a rate of 4% per year for 5 years. what is the current value of the 1,000,000 investment? include your calculations in your final answer.

The current value is about $815,372.70

Step-by-step explanation:

This is an exponential decay problem. The formula is:

WHere

F is the future amount (after some time, here it is after 5 years)

P is the original amount invested (it would be P = 1,000,000)

r is the rate of decrease, in decimal (here, 4% per year means 0.04 )

t is the time period (here, it is after 5 years, so t = 5)

plugging in all the info we get:

step-by-step explanation: