Question

Prakash bought a new car at the dealership for $27,000. It is estimated that the value of the car will decrease 7% each year. Which exponential function models the value v of the car after t years?

Answer 1

v=27,000×(1−0.07)^t
V=27000 (0.93)^t

Answer 2

Answer: The exponential function models the value v of the car after t years is given by

`V=27000(0.93)^t`

Explanation:

Since we have given that

Value of the new car at the dealership = $27000

Rate of decrease = 7%

As we know the formula for "Exponential function" :

`V=P(1-0.07)^t\\\\V=27000(1-0.07)^t\\\\V=27000(0.93)^t`

Hence, the exponential function models the value v of the car after t years is given by

`V=27000(0.93)^t`