Answer:
Value of couch after 4 years is $328.05
Step-by-step explanation:
Given that the starting value is 500, and the rate is 0.90, and we are being asked to determine the value after 4 years, we can use the exponential decay formula.
Where:
v = o ( 1 - r )^t
v = value
o = original (principal)
r = rate
t = time
plug in our values:
v = 500(1 - 0.10)^4
v = 500(0.90)^4
v = 328.05
