Question

2. The value of a Plasma TV bought new for $3,700 decreases 25% each year. Identify the function for the value of the television. Does the function represent growth, or decay?
V(t) = 3700(1.25)t; growth
V(t) = 3700(0.75)t; decay
V(t) = 3700(1.25)t; decay
V(t) = 3700(0.75)t; growth

Answer 1

The value of a Plasma TV decreases by 25% each year So it's decay function which is
V(t) = 3700(1-r)^t
Where r is 25/100=0.25
V(t) = 3700(1-0.25)^t
V(t) = 3700(0.75)^t

So the answer is
V(t) = 3700(0.75)t; decay