Question

I require assistance with a problem

Answer 1

Given:

Initial price of car, a = $20,300

Depreciation rate, r = 8.75% = 0.0875

Time, t = 12 years

Let's find the value of the car after 12 years.

This is an exponential decay problem.

To find the value of the car after 12 years, apply the exponential decay function below:

`y=a(1-r)^t`

Input values into the equation and solve for y.

Thus, we have:

`y=20300(1-0.0875)^(12)`

Solving further:

`\begin{gathered} y=20300(0.9125)^(12) \\ \\ y=20300(0.33326) \end{gathered}`
`y=6765.35`

Therefore, the value of the car after 12 years is $6765.35

ANSWER:

$6765.35