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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 Kamilia
by
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1 Answer

7 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 Treps
by
8.8k points
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