Example 3

Grace inherited some stock on her 18th birthday. In 1995 the stock was worth $25,000. Due to the decline in the stock market, its value is decreasing by 5% each year. The value of the stock is shown on the following graph, where x is the number of years that have passed since 1995. For this example, let’s assume that the domain of the function is all real numbers, since the stock existed before Grace’s inheritance. Use the given information to determine the end behavior of the function and the type of function.
1. Determine the end behavior of the function. 2. Identify the type of function described. This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit www.walch.com for more information.