Exponential Growth and Decay

A business earned $85,000 in 2006. Its earnings then decreased by 2% each year for 10 years. Choose the exponential decay model to represent the decreasing annual earnings of the business.

Which equation represents an exponential growth model?

Choose the model that best represents the decay curve shown in the graph.

Solve.

At the start of a basketball tournament consisting of six rounds, there are 64 teams. After each round, one half of the remaining teams are eliminated. Choose the exponential decay model showing the number of teams left in the tournament after each round.

In 1995 a farmer purchased a parcel of land for $8000. The value of the land depreciated by 4% every year. What was the approximate value of the land in 2002?