Question

Suppose that the dollar v (t) of a certain house that is t years old is given by the fallowing exponential functionV(t) = 659,500(0.79)^t

Answer 1

- The initial value of the function is obtained when t=0. Replace this value into the formula for V(t):

V(0) = 659,000(0.79)⁰ = 659,000

- The function represent a decay because the factor exponentiated, 0.79, is lower than 1.

- 0.79 represents a decay of

1 - 0.79 = 0.21

which is equivalent to a decay of 21%