The price of a computer component is decreasing at a rate of 10% per year. State whether this decrease is linear or exponential
1 answer:
Answer:
The cost in 3 years is $80.19.
Step-by-step explanation:
The cost of computer component is $110 today.
The cost is decreasing at a rate of 10% per year.
When it decreases by 10% per year then it is exponential.
Initial cost is $110. When it decreases 10% per year, the decay factor is 1-0.10 =0.90.
So, we could use the exponential formula y=
Where 'a' is initial cost and b is decay factor.
Our equation would by plug in 'a' as 110 and 'b' as 0.90.
We get
Now, to find the cost in 3 years, use x as 3.
Which is simplified to
y=$80.19
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