a) a = 2500, the initial price
b) r = 0.75 is the factor of the devaluation of that machine.
c) B is the factor of that devaluation
d) 75%
e) $593.26
1) Data
Initial price: $2500
M(t) = 2500(0.75)^t
2) Since an exponential function can be written generally as:
a) Then we can identify "a" as the initial value, therefore a = 2500
b) r = 0.75 is the factor of the devaluation of that machine, in this case.
c) B is the factor of that devaluation, overtime the machine devaluates 0.75 of its value.
d) To write 0.75 as a percentage we need to multiply it by 100. So 0.75 (or simply .75 is 75%
e) To find out the value of that machine within a period of 5 years let's plug t=5 into the formula:
So 5 years after the purchase the machine worths $593.26