Question

Solve the equation of exponential decay.

Suppose a country's exports declined 2.7% from 2010 to 2011. In 2010 the country exported $1.035 trillion. Assuming this continued what would the exports be in 2013

Answer 1

$953.4 billion

Explanation:

Each year, exports are (1-0.027) = 0.973 of what they were the year before. After 3 years, the export value is multiplied by 0.973^3. So, in 2013, the value of exports would be ...

($1035 billion)(0.973^3) ≈ $953.4 billion