Question

A car was purchased for $26,000. Each year since, the resale value has decreased by 25%. Let t be the number of years since the purchase. Let y be the resale value of the car, in dollars. Write an exponential function showing the relationship between y and t.

Answer 1

26,000 x .75 ^ y

Explanation:

The car started at a value of $26,000. That will be the base number.

26,000 goes down 25% each year. Take the cost and multiply by .75. This gives you 75% of the number meaning it lost 25%.

In order to make more years take off more cost you must add y (years)

to the amount you multiply by which is .75. so .75^y

26,000 x .75^y = worth of car after so a number of years