Amber bought a condominium at a time when prices were at their highs. she paid $200,000. since then, the market value has decrease by 5% per year. write an exponential depreciation equation to model this situation. approximately when will amber's condominium be worth less than $140,000?

Since, the exponential decay function,

Where,

P = initial value,

r = rate per period,

t = number of periods,

Here, P = $ 200,000, r = 5% = 0.05,

Thus, the value of the condominium would be,

Which is the required equation.

If A < 140,000

By the graphing calculator.

Hence, about after 7 years the condominium will be worth less than $140,000.