Question

Mrs Thompson bought a new Bugatti for $300,000.  The formula V =300,000(1−0.125)y models the value of the system,V, in dollars, after depreciation for y years.  In this formula, what is the meaning of the term (1-0.15)?

Answer 1

The equation V=300000(1-0.125)y can be expressed as,

`\begin{gathered} V=300000(1-0.15)y \\ =300000\cdot(1-(15)/(1000))\cdot y \end{gathered}`

So, equation V=300000(1-0.125)y represents the decrease in cost of Bugatti after y year at the rate of 15%.

The correct answer ic C part.