A company reduces its energy usage by 7% every year. If the 
initial usage is 5000 kWh, what will the usage be after 5 years?

The energy usage of the company decreases by 7% every year, meaning each year the energy usage is 93% (100% - 7%) of the previous year's usage.

The formula to calculate the energy usage after \( t \) years is:

\[
\text{Usage after } t \text{ years} = \text{Initial usage} \times (1 - r)^t
\]

Where:
- Initial usage = 5000 kWh
- \( r \) = 7% = 0.07 (the rate of reduction)
- \( t \) = 5 years

Substituting the values:

\[
\text{Usage after 5 years} = 5000 \times (1 - 0.07)^5
\]
\[
\text{Usage after 5 years} = 5000 \times (0.93)^5
\]

Now let's compute that.

\[
5000 \times (0.93)^5 \approx 5000 \times 0.712986
\]
\[
\approx 3564.93 \, \text{kWh}
\]

So, the energy usage after 5 years will be approximately **3564.93 kWh**.

Would you like further details or have any questions?

Here are five related questions:
1. What would the energy usage be after 10 years at the same rate?
2. How much total energy is saved over 5 years compared to the initial usage?
3. If the company increases the reduction rate to 10% per year, what will the usage be after 5 years?
4. What is the average energy usage per year over the first 5 years?
5. How long will it take for the energy usage to be halved?

**Tip:** Exponential decay models like this one are frequently used in energy consumption, population decline, and depreciation problems.

A company reduces its energy usage by 7% every year. If the initial usage is 5000 kWh, what will the usage be after 5 years?

Learn how to calculate the energy usage reduction of a company decreasing its consumption by 7% per year. The problem explores exponential decay and percentage decrease concepts, solving for energy usage after 5 years from an initial 5000 kWh. Suitable for Grades 9-12.

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