Intermediate Algebra (6th Edition)

Published by Pearson
ISBN 10: 0321785045
ISBN 13: 978-0-32178-504-6

Chapter 9 - Section 9.4 - Exponential Growth and Decay functions - Exercise Set - Page 564: 11

Answer

The final amount after 25 years of decay is approximately $13$.

Work Step by Step

RECALL: Exponential decay is represented by the formula $y=C(1-r)^x$ where C = initial/original amount r - decay rate x = number of time intervals The given exponential growth has: C = 207,000 r = $32\%$ x = 25 years Substitute these values into the given formula above to have: $y=207,000(1-32\%)^{25} \\y=207,000(1-0.32)^{25} \\y=207,000(0.68^{25}) \\y=13.44909815 \\y\approx 13$
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