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DedPeter [7]
2 years ago
12

Compound Interest P = $50 r = 3.5% t = 10 years​

Mathematics
1 answer:
pychu [463]2 years ago
4 0
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2 years ago
You purchase a stereo system for $830. The value of the stereo system decreases 13% each year. a. Write an exponential decay mod
lorasvet [3.4K]

Answer:

a. y=830*(0.87)^x

b. The value of stereo system after 2 years will be $628.23.

c. After approximately 4.98 years the stereo will be worth half the original value.

Step-by-step explanation:

Let x be the number of years.

We have been given that you purchased a stereo system for $830. The value of the stereo system decreases 13% each year.

a. Since we know that an exponential function is in form: y=a*b^x, where,

a = Initial value,

b = For decay b is in form (1-r), where r is rate in decimal form.

Let us convert our given rate in decimal form.

13\%=\frac{13}{100}=0.13

Upon substituting our given values in exponential decay function we will get

y=830*(1-0.13)^x

y=830*(0.87)^x

Therefore, the exponential model y=830*(0.87)^x represents the value of the stereo system in terms of the number of years since the purchase.

b. To find the value of stereo system after 2 years we will substitute x=2 in our model.

y=830*(0.87)^2

y=830*0.7569

y=628.227\approx 628.23

Therefore, the value of stereo system after 2 years will be $628.23.

c. The half of the original price will be \frac{830}{2}=415.

Let us substitute y=415 in our model to find the time it will take the stereo to be worth half the original value.

415=830*(0.87)^x

Upon dividing both sides of our equation by 830 we will get,

\frac{415}{830}=\frac{830*(0.87)^x}{830}

0.5=0.87^x

Let us take natural log of both sides of our equation.

ln(0.5)=ln(0.87^x)

Using natural log property ln(a^b)=b*ln(a) we will get,

ln(0.5)=x*ln(0.87)

\frac{ln(0.5)}{ln(0.87)}=\frac{x*ln(0.87)}{ln(0.87)}

\frac{ln(0.5)}{ln(0.87)}=x

\frac{-0.6931471805599}{-0.139262067}=x

x=4.977286\approx 4.98

Therefore, after approximately 4.98 years the stereo will be worth half the original value.

5 0
3 years ago
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