Question

you buy a new iphone 12 pro max for $1099 the value of the iphone decreases by 25% annually write a model for the value of the phone and use the model to see how much it would be worth after 3 years ?

Answer 1

The price of the iphone can be modeled by the following expression:

`A=P(1-r)^t`

where,

A: price of the iphone after t years

P: initial price = 1099

r: rate of percetage decrease in decimal for = 0.25

t: years

Then, the function becomes:

`\begin{gathered} A=1099(1-0.25)^t \\ A=1099(0.75)^t \end{gathered}`

The price of the iphone after t = 3 years, according to the previous expression is:

`\begin{gathered} A=1099(0.75)^3 \\ A=463.64 \end{gathered}`

Hence, the price of the iphone after 3 years would be $463.64