Question

The original value of a car Is $15,000 and it depreciates (loses value) by 20% each year what is the value of the car after three years

Answer 1

15000(0.8)^3

15000(0.512)

7,680

The value of the car would be $7,680

Answer 2

This is an exponential decay function of the form:

y=ab^x, In this case:

y=15000(0.8^t) so for t=3

y=15000(0.8^3)

y=$7680