Example 1 — Classify and project
EasyProblem
A car worth loses 10% of its value each year. Is this growth or decay, and what's it worth after 2 years?
Solution
-
Value is multiplied by the same factor yearly, so it's exponential; 10% loss means .
Name the structure before touching arithmetic — that is what makes the right method obvious.
-
Ask the recognition question: Is the quantity multiplied by the same factor each period, and is that factor above or below 1?
If the answer is yes, the concept applies; the cue, not a keyword, decides the method.
-
Apply with .
The rule is chosen only after the structure matches, so the steps mean something.
-
.
Keep units, shape, or answer form tied to the story so the work does not become symbol pushing.
-
Check the answer against the original question.
It should fit the mental model — multiply up or multiply down. If it does not, revisit the recognition step before changing the arithmetic.
Answer
Decay; after 2 years
Takeaway: A base between 0 and 1 means decay; convert the percent loss to .