John purchases a new bicycle for 880 US dollars (USD) and pays for it with a Canadian…
MATHEMATICS · Multi-part · AP · AP Precalculus · Exponential and Logarithmic Functions · Exponential and Logarithmic Functions
Problem
John purchases a new bicycle for 880 US dollars (USD) and pays for it with a Canadian credit card. There is a transaction fee of 4.2% charged to John by the credit card company to convert this purchase into Canadian dollars (CAD). The exchange rate is 1 USD = 1.25 CAD. John insures his bicycle with a US company. The insurance company produces the following table for the bicycle's value during each year.| Year | Value of the bicycle (USD) |
|---|---|
| 1st | 880 |
| 2nd | 704 |
| 3rd | 563.20 |
| ... | ... |