Question

Mrs. Galicia bought a new car for $20,000. This car will depreciate at a rate of 6% per year. Which

equation represents this function in terms of x, time.
f(x) = 200000.94)*
f(x) = 20000(6)
f()= 20000.06)
f(x) = 20000(1.05)

Answer 1

f(x) = 20,000(1 - 0.06)^x

Explanation:

The equation to get exponential decay is: A = P(1 +- r)^t

A = Account Balance

P = Principle Amount

r = interest rate (decimal)

t = Time (years)

So, if you plug in all the variables with the values represented in the word problem, you get: f(x) = 20,000(1 - 0.06)^x

Hope this helps!