Question

Mr. Murphy's company used a total of 5000 gallons ofgasoline in the year 2007. Mr. Murphy planned to reducethe amount of gasoline used by his company each year by10% from the previous year.Based on Mr. Murphy's plan, what is the total amount ofgasoline that his company will use in the year 2010?o 3281 gallonso 3500 gallons0 3645 gallonso 4050 gallons

Answer 1

We have the following:

The corresponding equation is the following

$A=P(1-r)^t$

Where P is 5000, r is 10% or 0.1 and t is 3 years

$\begin{gathered} A=5000\cdot(1-0.1)^3 \\ A=3645 \end{gathered}$

Therefore, the correct answer is 3645 gallons.