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a) a = 2500, the initial price
b) r = 0.75 is the factor of the devaluation of that machine.
c) B is the factor of that devaluation
d) 75%
e) $593.26
1) Data
Initial price: $2500
M(t) = 2500(0.75)^t
2) Since an exponential function can be written generally as:
[tex]y=a(b)^x[/tex]a) Then we can identify "a" as the initial value, therefore a = 2500
b) r = 0.75 is the factor of the devaluation of that machine, in this case.
c) B is the factor of that devaluation, overtime the machine devaluates 0.75 of its value.
d) To write 0.75 as a percentage we need to multiply it by 100. So 0.75 (or simply .75 is 75%
e) To find out the value of that machine within a period of 5 years let's plug t=5 into the formula:
[tex]\begin{gathered} M(5)=2500(0.75)^5 \\ M(5)\text{ =593.26} \end{gathered}[/tex]So 5 years after the purchase the machine worths $593.26