Final answer:
The situation described, where the value of a vehicle decreases by 20% each year, is an example of an exponential model.
Step-by-step explanation:
The situation described, where the value of a vehicle decreases by 20% each year, is an example of an exponential model.
In an exponential model, the value of a variable changes by a constant percentage over time.
In this case, the value of the vehicle is decreasing by 20% each year, which is a constant percentage change over time, indicating an exponential model.