The price of a computer component is decreasing at a rate of 11% per year. State whether this decrease is linear or exponential. If the component costs $60 today, what will it cost in three years? Is the decline in price linear or exponential?
Use the same reasoning in this one as in the previous question about the price of the car.
60 ( 1 - .11)^3 ≈ $42.30
Exponential (decay)