The price of a computer component is decreasing at a rate of 12% per year. State whether this decrease is linear or exponential
. If the component costs70 $ today, what will it cost in three years?
1 answer:
Answer:
In three years, cost (Value) = 47.70
Step-by-step explanation:
When the decrease is relative to the last value, it is exponential.
Depreciations are usually exponential.
In three years,
Value = 70*(1-0.12)^3
= 47.70
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