The price of a computer component is decreasing at a rate of 12% per year. State weather this decrease is linear or exponential. If the component cost 90$ today, what will it cost in three years?

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The price of a computer component is decreasing at a rate of 12% per year. State weather this decrease is linear or exponential. If the component cost 90$ today, what will it cost in three years?
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The decline in price would be exponential, due to the fact that the decrease in price is not always the same, since it

changes every year. 

After n years, the price of a computer component is  A=P1-r100n

Where A = Rate of computer component after n years

           P=  Present rate of computer component

           r = Rate of change in price (for decreasing before r use - and for increasing before r use + )

          n = time period.

The above formula is just look like as of the form y=abx, hence the decreasing rate is exponential.

 

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