During the first month after the opening of a new shopping home, sales were $72 million. Each subsequent month, sales declined by the same fraction. If the sales during the third month after the opening totaled $18 million, what is that fraction?

3 Answers
Jul 10, 2018

I need some clarification.

Explanation:

1st month $72 million
3rd month $18 million

I assume that you are saying that every month, the sales drop in this manner:

1st month is $72 million,

(Letting fraction = x, )

2nd month is $72x million

So 3rd month is $(72x)x million = $18?

If so, please give me the thumbs up to go ahead..

Because it can also mean a fraction the original $72 million was removed in the 2nd month.

Jul 10, 2018

134

Explanation:

If we model this on an exponential function:

At=A0ekt

18=72e3k

ln(14)3=k

At=72e(ln(14))t3

At=72(14)t3

At=72(134)t

So (134) seems to be the fraction we seek.

Testing this:

looking at $18 M. after 3 months.

1872=14

We would expect after 6 months the amount to be:

1418=92

And:

(134)6=92

12

Explanation:

I'm reading the question this way - We have sales in Month 1 of $72M, month 3 of $18M, and an equal fraction decline from months 1 to 2 and 2 to 3. What's that fraction?

The first thing I'd do is to look at the fraction decline from 72 to 18:

1872=14

Since this represents the total decline over 2 months, by observation we can see the fraction is 12:

x2=14x=12

Testing this, we should see sales declining by 12 each month:

Month 1: $72M
Month 2: 12×$72M=$36M
Month 3: 12×$36M=$18M