78.9k views
5 votes
The value of a car with an initial purchase price of $12,250 depreciates by 11 percent per year

The value of a car with an initial purchase price of $12,250 depreciates by 11 percent-example-1
User Blackball
by
8.3k points

1 Answer

2 votes

Answer:

It is decay because the value of the car keeps falling.

for example, the value next year, would be 12250 x (100% - 11%) = $10,902.50

If it were a growth, the value would increase yearly

12250 x (0.89)^time

Explanation:

the equation to represent exponential decay = Amount x ( 1 - rate)^time

User Sebastian Scholl
by
8.4k points