Question

Bobby purchased land for $6500 in 1989. The value of the land depreciated by 1.6% per year, use an exponential function to find the approximate value of the land in 1999.

Answer 1

Answer: The exponential function to model the value of the land over time t (in years) is given by:

V(t) = 6500 * e^(-0.016t)

So, to find the value of the land in 1999 (10 years after 1989), we can plug in t = 10 into the equation:

V(10) = 6500 * e^(-0.016 * 10) = 6500 * e^(-0.16) = 6500 * 0.8499 = 5524.935

Therefore, the approximate value of the land in 1999 was approximately $5524.935.