Question

The price of a computer component is decreasing at a rate of 13​% per year. State whether this decrease is linear or exponential. If the component costs ​$90 ​today, what will it cost in three​ year

Answer 1

$59.27

Explanation:

It is exponential decrease.

After each year goes by its worth 100 - 0.13 = 0.87 of the previous value.

The equation of decrease is V = 90(0.87)^t where t = the number of years.

So after 3 years it is worth 90(0.87)^3

= $59.27.