Question

A new car is purchased for 19900 dollars. The value of the car depreciates at 7.5% per year. What will the value of the car br, to the nearest cent, after 8 years?

Answer 1

10,665.64

Explanation:

Exponential Functions:

y=ab^x

A= starting value = 19900

r=rate = 7.5%=0.075

Exponential Decay:

b=1-r=1-0.075=0.925

Write Exponential Function:

y=19900(0.925)^x

Plug in time for x:

y=19900(0.925)^8

y= 10665.6404317

Evaluate

y≈10665.64