Question

A new car costs $45,000 but depreciates

15% each year. Write a function that
models the value of the car. Find the value
of the car after 10 years.

Answer 1

The value of the car after 10 years can be found using the formula Value = Initial Value * (1 - Depreciation Rate)^Number of Years. Substituting the given values, the value after 10 years is approximately $16,070.51.

Step-by-step explanation:

To model the value of the car over time, we can use the formula:

Value = Initial Value * (1 - Depreciation Rate)^Number of Years

Given that the initial value of the car is $45,000 and it depreciates by 15% each year, we can substitute these values into the formula.

Value after 10 years = $45,000 * (1 - 0.15)^10

Value after 10 years = $45,000 * (0.85)^10

Using a calculator, the value after 10 years is approximately $16,070.51.