Question

Brianna bought her car for $15,640. It is expected to depreciate an average of 15% each year during the first 7 years. What will the approximate value of her car be in 7 years?

A. $4898

B. $5014

C. $5108

D. $5146

Answer 1

$5,014

Explanation:

Got it right on the test :)

Answer 2

This problem is modeled by the exponential growth/decay function which has the form:

F=Ir^t, F=final value, I=initial value, r=rate of change, t=time, in this case:

F=15640(1-.15)^t

F(t)=15640(0.85)^t so

F(7)=$5013.83 (to nearest cent)

They rounded to nearest dollar

$5014