Question

The yearly profits of the company are $25,000. The profits have been decreasing by 6% per year. A.

Write an exponential decay function to represent this situation. B. What will be the profits in 8 years?
Round your answer to the nearest dollar.
use the formula
f(t)=a(l-r)^t

Answer 1

A. The exponential decay function that represents this situation is f(t) = 25000(0.94)^t, where t is the number of years after the initial profit.

B. To find the profits in 8 years, we substitute t = 8 into the equation and evaluate f(8) as follows:

f(8) = 25000(0.94)^8 = 16783.73

the profits in 8 years will be approximately $16,784 (rounded to the nearest dollar).