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State whether the decay is linear or​ exponential, and answer the associated question. The value of a car is decreasing by 13% per year. If the car is worth ​$10,840 today, what will it be worth in two​ years?

User Momobo
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Final answer:

The decay in the value of a car is exponential, and the car will be worth approximately $8,216.84 in two years.

Step-by-step explanation:

The decay in the value of a car is exponential, as it decreases by a fixed percentage each year. In this case, the car's value is decreasing by 13% per year. To calculate the car's worth in two years, we can use the formula:

Final Value = Initial Value * (1 - decay rate)^n

Given that the car is worth $10,840 today and the decay rate is 13%, we can substitute these values into the formula:

Final Value = $10,840 * (1 - 0.13)^2

Final Value = $10,840 * (0.87)^2

Final Value = $10,840 * 0.7569

Final Value = $8,216.84

Therefore, the car will be worth approximately $8,216.84 in two years.

User Simon Klee
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