Question

The value of a car is $21,500. It loses 12% of its value every year.

Part A: Write a function that represents the value y (in dollars) of the car after x years.


Part B: Use the function to estimate the value of the car after 6 years. (round your answer to the nearest whole number)

Answer 1

Part A:
For this case we have a function of the form:
y = A * (b) ^ x
Where,
A: initial value
b: decrease rate
x: time in years
Substituting values:
y = 21500 * (0.88) ^ x

Part B:
For 6 years we have:
y = 21500 * (0.88) ^ 6
y = 9984.687866
Rounding off we have:
y = 9985 $