Answer: The rate of change in the value of the guitar is modeled by 0.95, which represents a decrease of 5% per year.
Step-by-step explanation:
Hi, to answer this question we have to apply an exponential decay function:
A = P (1 - r) t
Where:
p = original price
r = decrease rate (decimal form)
t= years
A = price after t years
Replacing with the values given:
A(t)=145(0.95)t.
Where
0.95 = 1-r
0.95-1 = r
-0.05 =-r
0.05 =r
Converting to percentage form:
0.05 x 100 = 5%
Feel free to ask for more if needed or if you did not understand something.
