suppose that the dollar value v(t) of a certain house that is t years old is given by the following exponential function.

Question

v(t)=559,900(0.91)^t

find the initial value of the house =

does the function represent growth or decay?=

by what percent does the value of the house change each year ?=

Answer 1

v(t)=559,900*(0.91)^t

Initial value means the value when t=0. You can see

v(0) = 559,900

It is a decay function because it is of the form

y = y₀. (1-r)^t where r is the decay factor

The value of the house declines by the decay factor, 0.09. Expressed in percent the decay rate is 9% each year.