Question

3b.) Nora is buying a used car valued at $22,730. It is expected to

depreciate an average of 9.5% each year. Predict the value of Nora's car in
6 years.
Help ??

Answer 1

$12487.86

Explanation:

Given data

Cost of car= $22,730

Rate of decrease= 9.5%

Time= 6 years

We can predict the value by using the exponential decay function'

A= P(1-r)^t

substitute

A= 22730(1-0.095)^6

A= 22730(0.905)^6

A= 22730*0.5494

A=$12487.86

Hence the value will be $12487.86