Question

Michael bought a car for $15,540. He estimates that the car will depreciate by 5% each year. Which function represents this situation? *

Answer 1

Answer:
`f(x) =15540(0.95)^x`

Explanation:

Given , Micheal bought a car for $15,540.

Rate of depreciation = 5% = 0.05 { To convert a percentage into decimal or fraction , we divide it by 100]

The exponential function used to show depreciation in amount or value ina time period of 'x' is given by :-

`f(x)=A(1-r)^x`

, where A = Initial value

r= rate of depreciation.

As per given , we have

A= $15,540

r= 0.05

Then , Required function :
`f(x)=15540(1-0.05)^x=15540(0.95)^x`