Question

Kelly bought a new car for $20,000. The car depreciates at a rate of 10% per year. What is the decay factor for the value of the car?

Answer 1

It is given in the question that

Kelly bought a new car for $20,000. The car depreciates at a rate of 10% per year.

And we have to find the decay factor.

In equation

`y = a(b)^x`

b is the decay factor which is equal to

`b=1-r`

Where r is the rate .

And in the given question, r is 10 % , that is 0.1.

So decay factor is

`b = 1-r = 1-0.1=0.9`

So the decay factor is 0.9 .