Question

The amount of money left on a loan that kira owes her grandmothers is represented by the function k(t)= 280(.88)^t where k(t) represents the amount of money left on the loan and t tepresents the time, in years.
1) Identify k(t) as growth or decay and explain your answer.

2) Name A0, startinf amount and explain what it represents.
3) Find r,the percent change and explain what it represents.
thank youso much!!!

Answer 1

Given:
k(t) = 280 (.88)^t

t       k(t)
0     280
1     246.40
2     216.83
3     190.81
4     167.91
5     147.76

k(t) is decay. The amount decreases as the number of years increases. This means that the loan is being paid off until it becomes 0.

280 is the starting amount. It is the amount loaned.

88% of the previous years amount is the remaining balance for the current year.