Question

A car is bought at the price of $20,000. The value decreases at the rate of .20 every year (t). The exponential expression 20,000(0.80)t describes this situation. Find the price of the car after 3 years.

Question 11 options:

A)

$9,399

B)

$11,874

C)

$10,240

D)

$5,892

Answer 1

y = 20,000 (.80)^t

y = 20,000 (0.80)^3

0.8^3 = 0.512

0.512 x 20,000 = 10240

Your answer would be C. $10,240.