Solution:
The decreasing function is given as:
[tex]y = a(1-r)^t[/tex]
Where,
y is final value
a is initial value
r is decreasing rate in decimal
t is number of years
From given,
a = 3000
t = 4 years
[tex]r = 7 \% = \frac{7}{100} = 0.07[/tex]
Substituting the values we get,
[tex]y = 3000(1-0.07)^4\\\\y = 3000 \times 0.93^4\\\\y = 3000 \times 0.74805201\\\\y = 2244.15603\\\\y \approx 2244.16[/tex]
Thus the value after 4 years is $ 2244.16
