Question

olve the equation of exponential decay. A company's value decreased by 11.2% from 2009 to 2010. Assume this continues. If the company had a value of $9,220,000 in 2009, write an equation for the value of the company t years after 2009.

Answer 1

f(t)=9,220,000(0.888)^t

Explanation:

We use 9,220,000 as our base because this is where the decay begins. To get the correct amount of decay, we need to subtract 11.2% from 1, or 100%. We get 88.8% so we turn this into a decimal by dividing by 100 and getting 0.888. We put this to the power of t to represent the decay because it has to be an exponent to be exponential decay, not linear decay. f(t) is not necessary, you could also use y. Hope this helps :)