Question

Terrence buys a new car for $20,000. The value of the car depreciates by 15% each year. If f(x) represents the value of the car

after x years, which function represents the car's value?
f(x) = 20,000(0.85)*
f(x) = 20,000(0.15)*
f(x) = 20,000(1.15)
f(x) = 20,000(1.85)

Answer 1

f(x) = 20,000(0.85)*

Explanation:

Answer 2

Answer:
`f(x)=20,000(0.85)^x`

Explanation:

We know that the exponential decay (depreciation) equation with rate of decay r in time period x is given by :-

`f(x)=A(1-r)^x`, A is the initial value .

Given: The initial value of truck = $20,000

Rate of depreciation= 15% = 0.15

Now, the function represents the car's value after x years is given by ;-

`f(x)=20,000(1-0.15)^x\\\\\Rightarrow\ f(x)=20,000(0.85)^x`