Answer:
a.The value of the van decreases by 20% each year since its purchase.
b.The value of the van decreases by 80% each year since its purchase.
d.Each year since its purchase, the value of the van is 80% of the value of the previous year.
Explanation:
From the above question, we are given the Exponential function
V(t)=10,000(0.8)^t
Verifying the given options:
a.The value of the van decreases by 20% each year since its purchase.
Option a is correct , this is because, the Exponential function above is and Exponential Decrease.
The formula is given as:
V(t) = 10000(1 - r) ^t
Where r = Decreasing rate
Comparing
= 1 - r = 0.8
= 1 - 0.8 = r
r = 0.2
Converting to percentage
= 0.2 × 100 = 20%
Option a is correct
b.The value of the van decreases by 80% each year since its purchase.
Let solve for t = 1 and t = 2
V(t) = 10000(0.8) ^t
When t = 1
= 10000× 0.8¹
= 8000
When t = 2
= 10000× 0.8²
= 6400
Confirming option d
For year 2
= 80% × year 1
Year 1 = 8000
= 80% × 8000 = 6400
Option b is correct
c.The value of the van decreases by $2,000 each year since its purchase.
Option C is incorrect
d.Each year since its purchase, the value of the van is 80% of the value of the previous year.
Option d is correct because
Let solve for t = 1 and t = 2
V(t) = 10000(0.8) ^t
When t = 1
= 10000× 0.8¹
= 8000
When t = 2
= 10000× 0.8²
= 6400
Confirming option d
For year 2
= 80% × year 1
Year 1 = 8000
= 80% × 8000 = 6400
Option d is correct
e.Each year since its purchase, the value of the van is 0.8 times the value of the previous year.
Option e is incorrect
From the options given in the question, the correct statements are,
Options a, b, and d.