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Posted Mar 22

Lana bought a sports car for $75,700. If the value of her car decreases 4.3% annually.
When using the exponential DECAY formula, what would be the value of r?

1 Answer

4 votes

Answer:

The value of r will be 0.043

Explanation:

Firstly, we need to write the exponential decay formula

the general form of the formula is;

A = P(1-r)^t

where A is the price after a certain year t

P is the initial value

r is the decay rate

t is the time

From the question, we have that;

r = 4.3%

4.3% in decimal will be 4.3/100 = 0.043

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