Question

A $15,000 car depreciates at 20% each year. If you were to write an exponential model in the form y = A • B^x , which value represents B in the function? a. 15,000 b. 0.2 c. 0.8 d. 0.02

Answer 1

c. 0.8

Explanation:

y=A*B^x

• A= price of car, B= rate of depreciation per year, x= time, years
• y= 15000*((100-20)/100)^x= 15000 * 0.8^x
• B=0.8

Option c. 0.8