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THIS IS FOR QUESTION 2

THIS IS FOR QUESTION 2-example-1

1 Answer

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Answer:

A = 25,500

B = 0.82

Explanation:

The problem statement tells you the initial value of the car is 25,500, so that will be the value of V(0).

V(0) = A·B^0 = A

25,500 = A . . . . . . use the given value for V(0)

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The problem statement tells you the value is 18% less after the first year, so is 1 -0.18 = 0.82 times the initial value.

V(1) = 25,500·B^1 = 25,500·B . . . . value after the first year

25,500·0.82 = 25,500·B . . . . substituting the given information

0.82 = B . . . . . . divide by 25,500

In summary, ...

  • A = 25,500
  • B = 0.82

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For these exponential growth/decay problems, you will find that A is always the initial value, and B is always (1+percentage change). Here the percentage change is -18%, so the value of B is 1-0.18 = 0.82.

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