Question

20 PTS

From 2002 to 2012, the number of a particular make of cars sold at a dealership yearly declined to 500. The number is expected to decline at a rate of 2.8% each year. How many cars will be sold in 2020? Round to the nearest whole number. Show all your work.

Answer 1

399 cars will be sold in 2020

Explanation:

Using exponential decay formula:

`y = a(1 - r)^(x)`

a = intial value at 2012 : 500

r = 2.8 %

`= (2.8)/(100) = 0.028`

x = time interval : 8

`y = 500 (1 - 0.028)^(8) \\y = 500 (0.972)^(8)\\y = 500 (0.797)\\ y = 399`