Question

10. A population of 1,236,000 grows 1.3% per year for 10 years.

11. A population of 752,000 decreases 1.4% per year for 18 years.

12. A new car that sells for $18,000 depreciates 25% each year for 4 years.

13. The value of a piece of equipment has a decay factor of 0.80 per year.
After 5 years, the equipment is worth $98,304. What was the original
value of the equipment?

14. A new truck that sells for $29,000 depreciates 12% each year. What is
the value of the truck after 7 years?

15. The price of a new home is $350,000. The value of the home appreciates 2%
each year. How much will the home be worth in 10 years?

Answer 1

Original Population = 1236000

Growth Rate = 1.3% per year

Since the population grows at an exponential rate, we can say that the growth of the population is an exponential growth.

Using the formula of exponential growth

population after 10 years = Original population (1-1.3%)^10

= 1236000 {1+(1.3/100)}^10

= 1236000 (1+0.013)^10

= 1236000 × 1.013^10

= 1236000 × 1.13787

= 1406407.32