SOLUTION: The balance of an investment is decreasing according to the rule Next year's balance = 0.85 � Current balance. If the original value of the investment is $600, find an exponent

Question 1042376: The balance of an investment is decreasing according to the rule
Next year's balance = 0.85 � Current balance.
If the original value of the investment is $600, find an exponential formula that gives the balance B after t years.
B = _____
Sorry, I just cannot get this one right.

Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

Each time, you're multiplying by 0.85 which suggests we have an exponential function here. The base of the exponential is 0.85 with the exponent being t. The original investment is tacked on out front. So the function is

B = 600*(0.85)^t

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