Correct Answer:
D. p = 14000(0.94)^(t/4)
Correct answer: p = 14000(0.94)^(t/4). A 6% decrease leaves 94% (0.94) every 4 years, and there are t/4 such periods in t years, so p = 14000(0.94)^(t/4).
Background: Exponential decay has the form: final = initial Γ (decay factor)^(number of periods).
- p = 14000(0.06)^(t/4): 0.06 is the amount lost, not the amount remaining.
- p = 14000 + 0.94(4t): This describes a linear change, not an exponential decay.
- p = 14000(0.94)^(4t): The exponent 4t counts four periods per year instead of one period per four years.
Did you know? Here the decay factor is 1 β 0.06 = 0.94.
Memory trick: Decay factor = 1 β rate.