Exponential function equation

Question

What is the exponential function for this scenario.

You have a $100 ring that decreases 2% each year.

what is the equation using f(x)=

Answer 1

One way to think about this is that if the ring loses 2% per year, then 98% of its value remains.

When x = 0, f(x) = 100 [its initial value is $100]

f(x) = 100 (.98)^x

f(0) = 100

f(1) = 98 [lost 2% pf 100 after 1 year)

f(2) = 100(.98)(.98) [98% of 98 remains after 2 years]

And so on...

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