Question

The value of a piece of jewelry bought new for $2,200 decreases 12% each year. Use a graph to predict the value of the jewelry in 7 years.

A) ≈ $1021.69
B) ≈ $899.09
C) ≈ $1161.01
D) ≈ $791.20

Answer 1

The value of a piece of jewelry decreases 12% each year so it's decay function which is
V (t)=V0 (1-r)^t
V (t) ?
V0 2200
R 0.12
T 7 years

V (7)=2,200×(1−0.12)^(7)
V (7)=2,200×(0.88)^(7)
V (t)=899.09