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Exponential growth and decay — problem 2 · Maths4U Original · 6 marks
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Maths4U Original · M4U-EXT-0580-GROWTH-DECAY-P02

A device has initial model value 500 units. Its value decreases by \(\displaystyle r=10\)% at the end of each year. Let \(\displaystyle n=2\).

  1. Find the model quantity after one year of decay. Explain your reasoning. [2]
  2. Find it after the full n years of decay. Explain your reasoning. [2]
  3. Starting instead at the same initial quantity, find the value after n years of r% annual growth. Explain your reasoning. [2]
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