A company bought phones for all of their employees this year for $999. The phones value will deprecate at a rate 8.25% per year. Write an exponential equation to express the value of a phone over time

Question

Write an exponential equation

Answer 1

A depreciation rate of 8.25% means that year on year the phones are valued at 91.75% of their value.

If t is the number of years, the value v=999(0.9175)ᵗ dollars after t years. At t=0, the value is $999.

ln(0.9175)=-0.0861 so v=999e⁻⁰˙⁰⁸⁶¹ᵗ is another way of writing the function.