Question

Delta has decided to start a side business as a photographer. She purchases a camera for $1600 but it loses value at 12.5% per year. Write a model to show the value of the camera after t years.

Answer 1

In this problem, we have an exponential decay function of the form

`y=a(1-r)^t`

where

a=$1,600 (initial value)

r=12.5%=0.125

y is the value of the camera

t is the number of years

substitute

`\begin{gathered} y=1,600(1-0.125)^t \\ y=1,600(0.875)^t \end{gathered}`