When a new cell phone is released, older generations of the same phone type typically decrease in sale
value by approximately 20% from its current price prior to the new phone's release.
Generally, a new generation is released each year. What type of relationship should be expected between the age of a phone and its sale value?
Each year, a cell phone's sale price will decrease by 20%, which is the same as becoming 80% of its current value. Take this sample case:
$500first generation phone (new)
$500⋅(0.80)new phone released
$500⋅(0.80)(0.80)another new phone released
$500(0.80)tafter t new phones released
An equation with this form signifies exponential decay.