Question

Mark but a brand new car for $35,000 in 2008 if the car depreciate in value approximately 8% per year write an exponential function to model the situation and find the value of the car in 2015

Answer 1

Answer: A = 19524.63

Explanation:

Since the car depreciate in value , the exponential function to model the situation will be

A = P
`(1-r)^(n)`

Where :

A = amount after n years

P = principal

r = rate %

n = number of years

substituting each values , the exponential function to model the situation becomes:

A = 35000
`(1-0.08)^(n)`

To find the value of the car in 2015 , it means we are finding the value after 7 years, therefore , when n = 7

A = 35000(
`(1-0.08)^(7)`)

A = $19524.63

Therefore , the amount in 2015 will be A = $19524.63