Question

1.You buy a new computer for $1,500. The value y (in dollars) of the computer decreases by 40%

each year.
2. Write an exponential function for the value, y, after x years.
3. How much will the computer be worth after 5 years of ownership?



4.A house was bought 20 years ago for $450,000. Due to inflation, its value has increased about 2%
each year.
5. Write an exponential function for the value, y, after x years.
6. How much will the house be worth after 10 years of ownership?​

Answer 1

Part A (Computer):

Decrease Rate: %40

Exponential Function: y= 1,500(0.60)^x

Value of Computer after 5 years: $116.64

y = 1,500(0.60)^ 5

0.60^5= 0.07776

0.07776 x 1500= 116.64

Part B (House):

Increase Rate: 2%

Exponential Function: y=450,000(1.02)^x

Value of House after 10 years: $548,547.49

y=450,000(1.02)^10

1.02^10= 1.21899442

1.21899442 x 450,000= 548,547.489