Jesslyn hypothesizes that the value of antique furniture can be modeled by exponential decay and that the value of a particular piece will decrease at a rate of 0.15% each year. If the furniture was originally valued at $15,000 in 1990 what should Jesslyn expect the value of the furniture to be in 2010?

Question

Mathematics

Halle Roberts

1 April, 22:02

Jesslyn hypothesizes that the value of antique furniture can be modeled by exponential decay and that the value of a particular piece will decrease at a rate of 0.15% each year. If the furniture was originally valued at $15,000 in 1990 what should Jesslyn expect the value of the furniture to be in 2010?

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Derrick Rose · Answer 1

If this can be modelled by exponential decay, therefore the function must be in the form of:

A = Ao (1 + r) ^t

where A is the final value, Ao is the initial = 15000, r is the rate of decay = - 0.0015, t is time = 2010 - 1990 = 20

A = 15,000 (1 - 0.0015) ^20

A = $14,556.36