Question

The value of a car with an initial purchase price of $15,250 depreciates by 16% per year. How much is the car worth after 6 years? Find f(6):

a=15,250

r=0.016

x=6

Please correct me if my rate is wrong please provide the work.

Answer 1

$13842.43

Explanation:

Given data

Value of car=$15,250

Rate of depreciation= 16%

Time = 6 years

We can use the exponential function below to model the value of the car after 6 years

v(t)= a(r)^x

But r= 1-0.016----------Because the value is depreciating

a=15,250

r=0.016

x=6

Substitute

v(t)= 15250(1-0.016)^6

v(t)= 15250(0.984)^6

v(t)= 15250*0.9077

v(t)= $13842.43

Hence the value will be $13842.43 after 6 years