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Please help me!!:)

MULTIPLE CHOICE QUESTION
A car was purchased in 2010 for $20,000.
The car is depreciating by 15% each year.
What is the "a" value?

User Nirmus
by
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1 Answer

2 votes

Answer:

20,000

Explanation:

I'm assuming your class is using this model of the exponential decay function:

f(x) = a(1 - r)^x

In this case, the equation would be:

f(x) = 20,000(1 - .15)^x

or, when 1 - r is calculated:

f(x) = 20,000(.85)^x

The "a" value is basically the starting value, because on a graph, the starting value would be where x = 0. Anything to the 0th power is 1, and anything multiplied by 1 is the same thing, making "a" the same as the starting value, or the y-intercept.

Therefore, a = 20,000.

Hope this helps!

User Geezer
by
7.9k points