Question

A new car is purchased for 17000 dollars. The value of the car depreciates at 12.25% per year. What will the value of the car be, to the nearest cent, after 14 years?

Answer 1

A new car is purchased for 17000 dollars. The value of the car depreciates at 12.25% per year. What will the value of the car be, to the nearest cent, after 14 years?

Exponential Functions:

`y=ab^x`

Exponential Decay:

`b=1 - r=1 - 0.1225=0.8775`

Write Exponential Function:

`y=17000(0.8775)^x`

Plug in time for x:

`y=17000(0.8775)^1^4`

`y=2728.4039733`

y ≈ 2728.4