Question

Type the correct answer in the box. Use numerals instead of words. Tony bought a new car at a cost of $20,000. The value of the car decreases by approximately 12% each year. Formulate the equation that gives the value, A(+), of the car xyears since Tony bought the car. A(t)-​

Answer 1

9514 1404 393

Answer:

A(x) = 20000(0.88)^x

Explanation:

The general form of these exponential equations is ...

A(x) = a·b^x

where 'a' is the initial value, and b is the annual growth factor. x is the elapsed time in years.

The growth factor is ...

growth factor = 1 + growth rate

Here, the growth rate per year is -12%, so the growth factor is ...

b = 1 -12% = 88% = 0.88

Of course, the initial value is a=20,000, so the equation is ...

A(x) = 20000(0.88)^x