The initial value of building is $1,456,000. After one year the value of the building is $1,405,040. What exponential dunction models the expected value of the building? Estimate the value of the building after 5 years.

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averes8 · Accepted Answer

Initial value = $1456000 After 1 year, value = $1405040 Let v is the value. v=A⋅Bt v(a)=1456000⇒A=1456000⇒v=1456000⋅Bt v(1)=14050040⇒1405040=1456000⋅B(1)⇒B=0.965 ⇒v=1456000(0.965)t valve after t years after t=5 years v=1456000⋅(0.965)t=$1218422.59

The initial value of building is $1,456,000. After one year the value of the building...

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