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24 votes
A new car is purchased for $32,500. The car depreciates every year ata

rate of 14%. Write an exponential function that represents that situation

User Berthur
by
7.0k points

1 Answer

11 votes

Answer:


y=32500(0.86)^(x)

Explanation:

General exponentially depreciating function is given as


y= a(1-b)^(x)------------(1)

Where a is initial value, b is percent depreciation/unit time and x is time

Here


a=32,500 \ \ \ b=0.14 \ \ \ and \ \ x \ is \ time \ in \ years

Substituting above values in equation (1)


y=32500(0.86)^(x)

At x=0


y=32500(0.86)^(0)\\y=32500

At x=1


y=32500(0.86)^(1) \\y=27950

User Tony Beninate
by
6.8k points
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