Question

2. A computer valued at $6500 depreciates at the rate of 14.3% per year. a. Write a function that models the value of the computer. b. Find the value of the computer after 3 years

Answer 1

$4088.5

Explanation:

Given data

Price a = $6500

Rate of depreciation r= 14.3%

Time x= 3 years

The exponential function Decay is described as

y= ab^x

For decay

b= 1-r

a.

Hence the exponential function that model the value of the computer is

y=a(1-r)^x

b.

y= 6500(1-0.143)^3

y= 6500*(0.857)^3

y= 6500*0.629

y=$4088.5

Hence the value of the computer after 3 years is $4088.5