Question

A bicycle depreciates in value each year. The value of the bicycle can be represented by the function y = 250(.85)6.

Identify the intial value and the decay rate.

Answer 1

A=250

r= 15%

Explanation:

Given data

We have the function

y = 250(.85)^6------------1

The given function is the same as the exponential decrease

function

P=A(b)^t---------------------2

Note

b= 1-r= 1-0.15

b= 0.85

When we compare both 1 and 2 above

A=250

r= 15%