Question 1:
In this question, it's asking you if the decreasing rate is linear or exponential.
The decreasing rate would be linear, due to the fact that it is decreasing at a constant rate of 11%. The decreasing rate doesn't change, which makes this linear.
Question 2:
In this question, it's asking you what would the component's cost be in 3 years if it started off at $120.
To find this, we're going to need multiply the price by -.11, and then subtract to get the price. We would repeat this until we reach 3 years.
Work:
[tex]120*-0.11=-13.2\\\\120-13.2=106.8\ \text{(Year 1)}\\\\106.8*-0.11= -11.748\\\\106.8-11.748=95.05\ \text{(Year 2)}\\\\95.05*-0.11=-10.4555\\\\95.05-10.4555=84.59\ \text{(Year 3)}\\\\\text{In year 3, the cost of the component would be \$84.59}[/tex]
Question 3:
In this question, it asks if the decline in price is linear or exponential.
The decline in price would be exponential, due to the fact that the decrease in price is not always the same, since it changes every year. The price doesn't decrease at the same price each year. As you see from question 2, the change in price is not the same each year.
