Question

You buy a surround sound system and speakers for your living room for $795. Each year, the value of the system decreases by 4%.

1a. Write an exponential model for this situation.

1b. Determine the value of the system after 3 years​

Answer 1

The system decreases by 4% per year, that is

100% - 4% = 96% = 0.96

(a)

The exponential model is

795 (0.96)^{t}(0.96)t ← t is time in years

Answer 2

see explanation

Explanation:

The system decreases by 4% per year, that is

100% - 4% = 96% = 0.96

(a)

The exponential model is

795
← t is time in years

(b)

value after 3 years = $795(0.96)³ ≈ $703.37