Question

A brand-new Tesla Model S costs about $70,000. Each year, its value drops 5.5%. How much will the car be worth in 5 years? First write an equation to represent this scenario, then solve it! Solving for exponential equation

Answer 1

To find the value of the car after 5 years, we can use exponential decay formula.

Step-by-step explanation:

To solve this problem, we need to use exponential decay formula. The formula for exponential decay is given by:

V = P(1 - r)^t

Where:

• V is the final value or worth of the car after t years
• P is the initial value or cost of the car
• r is the percent rate of decrease as a decimal
• t is the number of years

Using this formula, we can substitute the given values into the equation and solve for the final value:

V = $70,000(1 - 0.055)^5

V ≈ $70,000(0.9441)

V ≈ $66,087.12

Therefore, the car will be worth approximately $66,087.12 in 5 years.