Given that the printer depreciates at the rate of 14% p.a. This has been modeled by the function V=2400(1-0.14)^t, this follows an exponential form given by y=a(b)^x where: V=y a=2400 b=1-0.14 x=t thus: <span>Part A: Explain what the parameter 2,400 represents in the equation of the function. </span>The parameter 2400 represents the initial value of the printer at time t=0. This is the original value.
<span>Part B: What is the factor by which the printer depreciates each year? The factor of depreciation is 14% percent. This is the rate at which the printer depreciates and it accounts for the value of the printer at the end of every year.
</span><span>Part C: Amy also considered purchasing a printer that costs $4,000 and depreciates by 25% each year. Which printer will have more value in 5 years? Value after 5 years of the $2400 printer that depreciates at 14% per year will be: V(t)=2400(1-0.14)^5=$1,129.025
Value after 5 years of the $4000 printer that depreciates at 25% per year will be: F(t)=4000(1-0.25)^t F(5)=4000(1-0.25)^5=$949.22
The printer that costs $2400 will be more valuable compared to the printer that cost $4000</span>
