At the band’s peak of popularity, a signed Black Diamond poster sold for $500. Three years later, the band was almost forgotten, and the poster was worth only $10. Write a function that will allow you to calculate how much the poster is worth after x years. State the meaning of each part of the equation in the context of the problem.

The annual depreciation rate is 72.86%

The annual depreciation rate is 72.86%.

Step-by-step explanation:

The information provided are:

From the above data we know that the band's popularity depreciated.

The initial cost of a signed Black Diamond poster was, a = $500.

After three years the cost of a signed Black Diamond poster was, y = $10.

It can be seen that the value of a signed Black Diamond poster is decreasing exponentially over the years.

The formula for exponential decay or depreciation is:

Here,

y = final value

a = initial value

r = rate of depreciation

x = time

Compute the annual depreciation rate as follows:

Thus, the annual depreciation rate is 72.86%.

example 2 – simplify: step 1: completely factor both the numerators and denominators of all fractions. step 2: change the division sign to a multiplication sign and flip (or reciprocate) the fraction after the division sign; essential you need to multiply by the reciprocal. step 3 : cancel or reduce the fractions.