Question

Write an exponential function to model each situation then solve. Find each amount after the specified time.

3. A Ford truck that sells for $52,000 depreciates 18% each year for 8 years.

Answer 1

This is an exponential function
Y= ab^x
a = initial value
b= rate of change
X= time
Y= 52000(1-0.18)^x
= 52000(0.88)^x
For 8 years x=8
Y = 52000(0.88)^8
=52000( 0.3596)
18700.995