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The stock price of one share in a certai...

The stock price of one share in a certain company is worth $360 today. A stock analyst believes that the stock will lose 28 percent of its value each week for the next three weeks. The analyst uses the equation V = `360(r)^(t)` to model the value, V, of the stock after t weeks
What value should the analyst use for r ?

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The correct Answer is:
134
The analyst’s prediction is that the stock will lose 28 percent of its value for each of the next three weeks. Thus, the predicted value of the stock after 1 week is $360 − (0.28)$360 = $259.20, after 2 weeks, $259.20 − (0.28)$259.20 ≈ $186.62, and after 3 weeks, $186.62 − (0.28)$186.62 ≈ $134.37. Therefore, to the nearest dollar, the stock analyst believes the stock will be worth 134 dollars after three weeks.
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