Question

Terrence buys a new car for $20,000. The value of the car depreciates by 15% each year. If f(x) represents the value of the car after x years, which function represents the car’s value?

f(x) = 20,000(0.85)x
f(x) = 20,000(0.15)x
f(x) = 20,000(1.15)x
f(x) = 20,000(1.85)x

Answer 1

f(x) = 20,000(0.85)^x

Explanation:

Given data

Cost of car P= $20,000

rate of depreciation r= 15%

Let us apply the depreciation formula

f(x) = P(1-r)^t

substitute

f(x) = 20000(1-0.15)^x

f(x) = 20000(0.85)^x

Therefore the correct expression is option 1

f(x) = 20,000(0.85)^x