Question

A new car is purchased for 17900 dollars. The value of the car depreciates at 12. 25% per year. What will the value of the car be, to the nearest cent, after 10 years?.

Answer 1

4845.34

Explanation:

Exponential Functions:

y=ab^x

a=starting value = 17900

r=rate = 12.25%=0.1225

Exponential Decay:

b=1−r=1−0.1225=0.8775

Write Exponential Function:

y=17900(0.8775)^x

Plug-in time for x:

y=17900(0.8775)^{10}

y=4845.3402815

y≈4845.34