Answer:
The correct option is, Exponential Decay, $23,914.85.
Step-by-step explanation:
A farmer buys a tractor for $50,000.
It is provided that the the tractor depreciates 10% per year.
The exponential function for decay is:
Here,
a = initial value
r = decay rate
t = time
Compute the value of the tractor in 7 years as follows:
Thus, the correct option is, Exponential Decay, $23,914.85.