Question

A retail store reported that their monthly revenues had been decreasing by 4% per month. At the beginning of 2017, they reported a monthly revenue of $800,000. Write an exponential function that models this scenario.

a) R(t) = 800,000 * (0.96)^t
b) R(t) = 800,000 * (1.04)^t
c) R(t) = 800,000 * (0.04)^t
d) R(t) = 800,000 * (1.96)^t

Answer 1

The correct answer is option a) R(t) = 800,000 * (0.96)^t. This exponential function models the scenario of the retail store's monthly revenues decreasing by 4% per month.

Step-by-step explanation:

The correct answer is option a) R(t) = 800,000 * (0.96)^t.

This exponential function models the scenario of the retail store's monthly revenues decreasing by 4% per month. The base of the function is 0.96, which represents the percentage decrease each month (100% - 4% = 96%). The exponent 't' represents the time in months since the beginning of 2017.

Using this function, you can plug in different values for 't' to calculate the monthly revenues at different points in time.