Question

The depreciating value of a semi-truck can be modeled by y = Ao(0.87)x, where y is the remaining value of the semi, x is the time in years, and it depreciates at 13% per year.

An exponential function comes down from the positive infinity and passes through the points zero comma eighty-seven thousand. The graph is approaching the x-axis.

What is the value of the truck initially, Ao, and how would the graph change if the initial value was only $67,000?

$90,000, and the graph would have a y-intercept at 20,000
$87,000, and the graph would have a y-intercept at 67,000
$87,000, and the graph would fall at a slower rate to the right
$87,000, and the graph would fall at a faster rate to the right

Answer 1

I just took the test the answer is

Explanation:

B. 87,000, and the graph would have a y-intercept at 67,000.

Answer 2

The initial value of the truck is the value of y when x = 0. Since the graph passes (0, 87000), this means that the value of the truck initially was $87,000. If the initial value was only $67,000, then the y-intercept would have been (0, 67000). This is the second choice.