Question

PLZZ HELPP
A T-shirt company bought a new packaging and tracking system for $100,000. The formula V=100,000(1-0.125) models the value of the
system V, in dollars, after depreciating for y years.
In this formula, what is the meaning of the term (1-0.125)?
Α. The value of the system will decrease by 12.5% each year.
.
В. The value of the system will be $0 in 12.5 years.
С The value of the system will decrease by $12.50 each year.
DThe value of the system will continue to decrease for 125 years.

Answer 1

Answer: c

Step-by-step explanation:

Answer 2

The term ( 1 -0.125) is a decay factor which means the value of system decreased by 12.5% each year.

What is exponential decay?

The process of reducing an amount by a consistent percentage rate over a period of time is called exponentially decay.

Exponentially decay rate formula

$y = a(1-r)^{x}$

a is initial amount

1-r is decay factor

x is time period

According to the given question.

We have a exponential function.

$V = 100,00(1-0.125)^{y}$

If we compare the above function with exponential decay rate formula i.e.

$y = a(1-r)^{x}$

We get,

a = 100,000

r = 0.125

In $V = 100,000(1-0.125)^{y}$, the term ( 1 -0.125) is a decay factor which means the value of system decreased by 12.5% each year.

Thus, option A is correct.

Find out more information about exponential function and decay factor here:

https://brainly.com/question/4119784

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