The price of the iphone can be modeled by the following expression:
[tex]A=P(1-r)^t[/tex]where,
A: price of the iphone after t years
P: initial price = 1099
r: rate of percetage decrease in decimal for = 0.25
t: years
Then, the function becomes:
[tex]\begin{gathered} A=1099(1-0.25)^t \\ A=1099(0.75)^t \end{gathered}[/tex]The price of the iphone after t = 3 years, according to the previous expression is:
[tex]\begin{gathered} A=1099(0.75)^3 \\ A=463.64 \end{gathered}[/tex]Hence, the price of the iphone after 3 years would be $463.64
