Question

Monthly car sales for a certain type of car are $350,000 and sales are depreciating at a rate of 3% per month.

a. Write an equation to represent this situation.
b. What will the monthly sales be after 8 months?

Answer 1

a)
`350000 * 0.97^m`, b) $274310.18

Explanation:

3 percent decline is 0.97, so 350,000*0.97^m where m is the month.

That means 350,000*0.97^8 = 274310.18 dollars.

Hope that helped,

-sirswagger21