Question

NEED QUICK HELP.

The value of a computer which initially cost $1600 depreciates in value 18% every year.

Find an exponential model which describes the value of the computer after x years. (what is the
exponential equation)

Answer 1

Hello!

The equation for an exponential deprecation model like this is
`y = a(1-r)^(x)`, where a is the starting value, x is the number of years passed, and r is the amount the value deprecates each year.

We know what a and r are: a = 1600, as that is the original cost of the computer, and r = .18, as that's how much it decreases by. Substitute these two into the equation.

We get
`y = 1600(1-.18)^(x)`. Now, subtract 1 - .18 to get our final answer.

`y = 1600(.82)^(x)` is therefore the final model.

Hope this helps!