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Sophie is buying a used car for 4500 dollars. The car is depreciating at a rate of 5% each month.

a) write an equation that models the value of the car after "x" months.
b) how much will the car be worth after 8 months
c) when will the car's value be $2,000

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Answer: a) To model the value of the car after "x" months, we can use the formula for exponential decay:

value after x months = initial value * (decay rate)^x

where the initial value is $4500 and the decay rate is 0.95 (100% - 5% = 95%):

value after x months = 4500 * 0.95^x

b) To find the value of the car after 8 months, we can substitute x = 8 into the equation above:

value after 8 months = 4500 * 0.95^8

value after 8 months = 4500 * 0.6634

value after 8 months = $2985.30

Therefore, the car will be worth approximately $2,985.30 after 8 months.

c) To find when the car's value will be $2,000, we can set the equation above equal to 2000 and solve for x:

2000 = 4500 * 0.95^x

0.95^x = 2000/4500

0.95^x = 0.4444

Taking the logarithm of both sides with base 0.95:

x = log(0.4444)/log(0.95)

x ≈ 14.8

Therefore, the car's value will be $2,000 after approximately 15 months (rounded to the nearest whole month).

Explanation:

User Gerry Shaw
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