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arandomwierdteen
arandomwierdteen arandomwierdteen
  • 30-11-2016
  • Mathematics
Answered

Help with this math problem?

Help with this math problem? class=

Verified Answer :

wizard123
wizard123 wizard123
  • 30-11-2016

The cost function is exponential, in that the variable "x" is an exponent.
This means that the value does not decrease by the same amount each year.

The 0.95 = 95% which is 100%-5% .
This means that the Cost is actually decreasing by 5% each year.

So as the Cost decreases each year, the amount it decreased by also goes down each year.

5% of 800 = 40   (800-40 = 760)
5% of 760 = 38    (760 - 38 = 722)
5% of 722 = 36.1   
.... and so on

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