The price of a computer component is decreasing at a rate of 15% per year.
State whether this decrease is linear or exponential. If the component costs $50 today, what will it cost in three years?

Step-by-step explanation:

Usually, this wording means the decrease is proportional to the current price, characteristic of an exponential function.

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The decay factor is 1-(decay rate), so is 1-0.15 = 0.85. After 3 years, the value has been multiplied by this factor 3 times:

  $50×0.85³ ≈ $30.71 . . . . cost in 3 years

Comment on percent per year

Less often, the indicated decrease is intended to be that percentage of the original price. The result is that the price decreases by a constant amount each year, a linear decrease. This condition most often arises in conjunction with figuring depreciation in value for tax or accounting purposes.

The upshot is that you always need to be careful to understand what the base of a percentage is intended to be.

3,750 deer

step-by-step explanation:

1,500 is 15 times larger than 100

lets make 250 15 times larger.

3750 deer

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%