Question

Cody purchased a car for $4500 that will depreciate 28% a year. Write an exponential growth/decay equation that represents the value of Cody's car overtime. How much will the car be worth in 15 years? Round to the nearest cent.

Answer 1

$32.60

Explanation:

This question has to to do with exponential decay. The formula is given as:

y = a(1 - r)^x

y = Value of the material after x years

a = Initial value of the material

x = Time in years

r = rate of depreciation or decay

Therefore,

y = 4500 × (1 - 0.28)¹⁵

y = 4500 × 0.72¹⁵

y = $32.598675906

y = Approximately = $32.60

Therefore the of the car after 15 years = $32.60