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?

Answer 1

v=15600*(0.92)^n
where v is value and n is years

Answer 2

`V=15600(0.92)^n` represents its value (V) after n years.

Explanation:

Rate of decrease = 8%

Original Value = a = $15600

Time = n years

Now we are supposed to find which equation represents its value (V) after n years

Formula :
`y=a(1-b)^n`

where a is original value

b is decay rate

n is time

y is value after n years i.e. V

So,
`V=15600(1-0.08)^n`

`V=15600(0.92)^n`

Hence
`V=15600(0.92)^n` represents its value (V) after n years.