Question

IF YOU DON'T KNOW DON'T ANSWER!!! 80 POINTS!!!

Kaleigh owns an appliance store. She purchases a new refrigerator to use in her store. The refrigerator depreciates by a fixed rate per year. The function V = 2,600(0.74)t can be used to model the value of the refrigerator after t years.

Part A: Explain what the parameter 2,600 represents in the equation of the function.

Part B: By what percentage does the value of the refrigerator increase or decrease each year? Explain your answer.

Part C: What is the value of the refrigerator after 3 years rounded to the nearest dollar? You must show your work.

Answer 1

Part A

2600 is the initial price of the refrigerator. That would be the purchase price.

Part B

b = .74 This is how much value is keeps each year. It is decaying by 1-.74 = .26 or 26 % decrease each year

Part C

1054.00

Explanation:

V = 2,600(0.74)^t

This is in the form y =ab^x

where a is the initial value, b is the growth (or decay) rate , and x is the time

Part A

2600 is the initial price of the refrigerator. That would be the purchase price.

Part B

b = .74 This is how much value is keeps each year. It is decaying by 1-.74 = .26 or 26 % decrease each year

Part C

V = 2,600(0.74)^t

Let t =3

V = 2,600(0.74)^3

=2600 (.405224)

=1053.5824

To the nearest dollar

1054.00