309,679 views
16 votes
16 votes
Delta has decided to start a side business as a photographer. She purchases a camera for $1600 but it loses value at 12.5% per year. What is the decay factor?

User Guyabel
by
2.5k points

1 Answer

20 votes
20 votes

In this problem, we have an exponential decay function of the form


y=a(b)^x

where

a is the initial value

b is the decay factor

b=1-r

where

r=12.5%=12.5/100=0.125

so

b=1-0.125

b=0.875

therefore

The answer is 0.875

User Tibbelit
by
2.4k points
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