The initial value of a building is $986,260. After one year, the value of the building is $936,947. What exponential function models the expected value of the building? Estimate the value of the building after 3 years.

Cheyanne Leigh

Cheyanne Leigh

Answered question

2021-02-13

The initial value of a building is $986,260. After one year, the value of the building is $936,947. What exponential function models the expected value of the building? Estimate the value of the building after 3 years.

Answer & Explanation

sweererlirumeX

sweererlirumeX

Skilled2021-02-14Added 91 answers

Exponential function can be represent as below :
f(x)=a(b)x
as initial value of building is $ 986260
for x=0,f(0)=986260
f(x)=a(b)x
f(0)=a(b)0=98260
a=986260
f(x)=986260(b)x
after 1 year for t=1,f(1)=936947
f(1)=986260(b)1=936947
b=936947986260
=0.95
f(x)=986260(0.95)x
After 3 years, t=3
f(3)=986260(0.95)3
=845594.6675
=845595

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