Question

Write a function in terms of t that represents the situation. A company profit of $20,000 decreases by 13.4% each year

Answer 1

Answer:

$P(t)=20000(0.866)^{t}$

Step-by-step explanation:

we can use formula

$P(t)=P_0(1-r)^{t}$

where

P(t) is the profit after t years

Po is initial profit or profit is at t=0

r is decreasing rate

t is time in years

we are given

A company profit of $20,000 decreases by 13.4% each year

so,

Po=20000

r=13.4%=0.134

now, we can plug values

$P(t)=20000(1-0.134)^{t}$

we get

$P(t)=20000(0.866)^{t}$