Question

The function A(t) = 1950 (0.65)t models the amount A(t) , in dollars, that Ted's company deducts from his check for health insurance based on time t, in months that Ted has worked for the company. Determine the rate used in this formula and identify as growth or decay.

Answer 1

This is an Exponential decay

The Exponential decay rate = 35%

Explanation:

Looking at that the above question, it is an Exponential decay

The formula for Exponential decay is:

A(t) = Ao (1 - r)^t

In the above question:.

A(t) = 1950 (0.65)^t

r = rate

Hence:

(1 - r) = (0.65)

1 - r = 0.65

r = 1 - 0.65

r = 0.35

Converting to percentage

0.35 × 100

= 35%

Hence, the Exponential decay rate is 35%