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I was given the following problem in a review sheet:
The value of an electronics company decreased by 11.2% from 2002 to 2003, and continued to decrease at the same rate each year. If the company had a value of $9,220,000 in 2002, what will it's value be in 2009?
What I want to know is: is there a equation that I can use to solve this problem? Thanks.
 Jan 9, 2013

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value in 2002 = v(2002) = 9220000

value in 2003 = v(2003) = v(2002) - .112 * v(2002) = v(2002) * (1 - .112)

value in 2004 = v(2004) = v(2003) - .112 * v(2003) = v(2003) * (1 - .112) = v(2002) * (1 - .112)^2

v(2005) = v(2002) * (1 - .112)^3

v(2009) = v(2002)*(1-.112)^7 = 9220000*(.888)^7 = $4,014,409.59 (approx.)

so the equation you seek is v(year) = $9220000*(.888)^(year-2002)
 Jan 12, 2013

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