Question

If a car is depreciating by 12%, what will the multiplier for the exponential function be?

Answer 1

0.88

Explanation:

Given data

Rate of depreciation = 12%

The expression for the exponential function is given as

A= P(1-r)^t

r= 0.12

A= P(1-0.12)^t

A= P(0.88)^t

Hence as seen from the expression, the multiplier is 0.88