Question

A financial survey estimated that, on average, the retail value of a mid-sized car decreases 8% annually. If the value of a mid-sized car in a particular year is $15,600, which equation represents its value (V) after n years?

A) V= 15,600(1.08)^n
B) V= 15,600(0.92)^n
C) V= 15.600(0.08)^n
D) V= 15,600(0.05)^n

Answer 1

Hi there

The answer is
B) V= 15,600(0.92)^n

Hope it helps

Answer 2

Answer: B)
`V=15600(0.92)^n`

Explanation:

The value mid-sized car in a particular year = $15,600

The rate of decay = 8% = 0.08

The exponential decay equation for n years is given by :-

`y=A(1-r)^n`, where A is the initial amount and r is the rate of decay.

Now, the exponential decay equation represents its value (V) after n years is given by :-

`V=15600(1-0.08)^n\\\\\Rightarrow\ V=15600(0.92)^n`

Hence, the equation which represents its value (V) after n years is given by :-

`V=15600(0.92)^n`