1. You buy a new computer for $1,500. The value y (in dollars) of the computer decreases by 40%

each year.

2. Write an exponential function for the value, y, after x years.

3. How much will the computer be worth after 5 years of ownership?

4. A house was bought 20 years ago for $450,000. Due to inflation, its value has increased about 2%

each year.

5. Write an exponential function for the value, y, after x years.

6. How much will the house be worth after 10 years of ownership?

Question

Braxton Coleman

Mathematics

14 June, 17:38

1. You buy a new computer for $1,500. The value y (in dollars) of the computer decreases by 40%

each year.

2. Write an exponential function for the value, y, after x years.

3. How much will the computer be worth after 5 years of ownership?

4. A house was bought 20 years ago for $450,000. Due to inflation, its value has increased about 2%

each year.

5. Write an exponential function for the value, y, after x years.

6. How much will the house be worth after 10 years of ownership?

+1

Answers (1)

Know the Answer?

Terrance Mcconnell · Answer 1

Part A (Computer):

Decrease Rate: %40

Exponential Function: y = 1,500 (0.60) ^x

Value of Computer after 5 years: $116.64

y = 1,500 (0.60) ^ 5

0.60^5 = 0.07776

0.07776 x 1500 = 116.64

Part B (House):

Increase Rate: 2%

Exponential Function: y=450,000 (1.02) ^x

Value of House after 10 years: $548,547.49

y=450,000 (1.02) ^10

1.02^10 = 1.21899442

1.21899442 x 450,000 = 548,547.489