Question

Gilbert purchased a car for 34000. The car depreciates at a rate of 14% per year. The exponential function that represents this situation is y = 34000(0.86)^x.

What is the change factor for this function?

Answer 1

.86

Explanation:

Exponential function formula

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

where a = initial value

r = rate of change

and t = number of years

given the equation y = 34000(0.86)^x.

r = .86

Hence the change factor is .86