Question

Solve the equation of exponential decay. Suppose a country's exports declined 2.7% from 2010 to 2011. In 2010 the country exported $1.035 trillion. Assuming this continued what would the exports be in 2013? Question 3 options: 930 billion 980 billion 953 billion 1.01 trillion

Answer 1

953 billion

Explanation:

Three years elapse between 2010 and 2013. The decay per year is 2.7%, meaning each year, the exports is 97.3% of that from the previous year (100% - 2.7%). Thus you can find the answer by doing 1.035 trillion times 97.3% to the power of 3 (the number of years). This results in approximately 953 billion.