Question

A publishing industry report predicts that magazine subscriptions will drop

by 10% each year. If this prediction is correct, then how many subscribers
will a magazine with 51,000 subscribers have in 7 years?
If necessary, round your answer to the nearest whole number.

Answer 1

24,393 subscribers

Explanation:

This is exponential decay problem. The formula for exponential decay is:

`F=P(1-r)^t`

Where

F is the future value (what we are looking for, in 7 years)

P is the present amount (that is 51,000)

r is the rate of decrease per year (r = 10% = 10/100 = 0.1)

t is the time, in years (t = 7)

Now substituting, we get:

`F=P(1-r)^t\\F=51,000(1-0.1)^7\\F=51,000(0.9)^7\\F=24,393.14`

Rounding to nearest whole number,

Number of subscribers after 7 years = 24,393 subscribers