Question

A powerful computer is purchased for $2000, but loses 20% of its value each year.

What is the decay factor?
Write the equation. f(t) =_(_)^t

Answer 1

A powerful computer is purchased for $2000,

but on the average loses 20% of its value each

year. How much will it be worth 4 years from

now?

The equation to use is:

y = abx . The initial

value

a = 2000 . In this case the value is

decreasing so multiplier b is always found by

subtracting the percent decrease from the

number "one," so

b = 1! 0.2 = 0.8 . The time

is

x = 4 . Substituting into the equation and

using a calculator for the calculations:

y = abx

= 2000(0.8)

4

= 819.2 . In four years

the computer will only be worth $819.20.

Explanation: