Question

Write a function in terms of t that represents the situation. A company profit of $20,000 decreases by 13.4% each year

Answer 1

The profit function is .
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Explanation:

The exponential decay function is defined as

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Where, a₀ is initial value, r is rate of change and t is time (in year).

From the given information it is noticed that the initial profit is $20,000 and it decreases by 13.4% each year.

The profit function is defined as

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Therefore the profit function is .

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