Below are two more situations that can be described using exponential functions. They represent a small sampling of the situations where quantities grow or decay by a constant percentage over equal periods of time. For each situation: Homework Help ✎
Find an appropriate unit of time (such as days, weeks, years).
Find the multiplier that should be used.
Identify the initial value.
Write an exponential equation in the form
that represents the growth or decay.
The value of a car with an initial purchase price of $12,250 depreciates by 11% per year.
If the value of the car decreases by 11% every year, then the car is worth 89% of the cost of it during the previous year.
Years; 0.89; 12,250
An investment of $1000 earns 6% annual interest, compounded monthly.
Use a similar process as in part (a) above.