Question

Please help! A new car that sells for $21,000 depreciates (decreases in value) 16% per year. Write a function that models the value of the car. Find the value of the car after 3 years.

A) $8,602

B) $11,779

C) $12,899

D) $12,447

Answer 1

Greetings!

Answer:

The function is:

21000 * (1 -
`(16)/(100)`)
`^(n)`

The price after 3 years would be D) $12,447

Explanation:

Because the value is depreciating, the price will decrease.

The function formula is:

Amount x (1 ±
`(percentage)/(100)`)
`^(n)`

Where n is the amount of years and the ± is a + if the value is increasing, and a - if the value is depreciating.

So plug the values in, with a minus:

21000 * (1 -
`(16)/(100)`)
`^(n)`

The price after 3 years would simply be the following equation:

21000 * (1 -
`(16)/(100)`)
`^(3)`

Which gives the result 12446.7 or 12447 to 1.d.p

This means that the answer is D) $12,447!

Hope this helps!