#### Explanation:

$\textcolor{b l u e}{\text{Answering the question}}$

This is the same sort of thing as compound interest.

Growth->P(1+x%)^n
Decay->P(1-x%)^n

This question requires decay.

Assumption: The calculation cycle is annually.

$50000(1-4/100)^3 $50000(96/100)^3 = $44236.80 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ $\textcolor{w h i t e}{}$$\textcolor{b l u e}{\text{Just for interest sake}}$Note that if the calculation cycle was monthly then the change is: As there are 12 months in 1 year we use the percentage (x%)/12 And the $n$value becomes $12 n$$50000(1-4/(12xx100))^(12xx3)

$50000(1-(cancel(4)^1)/(cancel(12)^3xx100))^(12xx3)  $50000(299/300)^(36)=\$44337.13