Product #1 iTech Device The current resale value is $300. The resale value is ex

Question

Product #1 iTech Device The current resale value is $300. The resale value is expected to decrease 30% per year for the next year.

Product #2 Dynasystems Device The current resale value is $300.The resale value is expected to decrease $45 per year for the next several years.

1a. Find the expected resale value (in dollars) for both devices 1 year from now and describe how you determined each value.

2a. Define function formulas to model the expected resale value in dollars for each device as functions of the number of years from now, t.

iTech Device: s= f(t); where f(t)=__________

Dynasystems Device: n=g(t); where g(t)=___________

2b. Explain what each part of the formulas represents relative to the context we are exploring.

Explanation / Answer

Ans: 1) For itech resale value after 1 year decreases by 30% which (30/100)*300 = 90.

So the resale value will be 300 - 90 = $210.

For Dynasystem resale value decreases by $45 per year. So resale value aftrr 1 year = 300-45 = $255.

2a) For itech f (t) = 300*((0.7)^t) where t is the no. Of years spend counted from the initial year.

For Dynasystem f (t) = 300-(45*t) where t is the no. Of years after the initial year.

2b) Both of the formulas contain an initial value of $300 and we see that it depreciates in both cases. For itech the depreciation is exponential as we see with the term (0.7)^t and for Dynasystem it decreases linearly as seen from the term 45*t.

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