Question

Luke purchased a motorcycle for $8,765. It depreciates about 5.3% each year. What is the value of the motorcycle after five years?

Answer 1

`\bf \qquad \textit{Amount for Exponential Decay}\\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\to &8765\\ r=rate\to 5.3\%\to (5.3)/(100)\to &0.053\\ t=\textit{elapsed time}\to &5\\ \end{cases} \\\\\\ A=8765(1-0.053)^5\implies A=8765(0.947)^6`