Question

Please answer asap! 20 points!!

A new car is purchased for 23,900 dollars. The value of the car depreciates at a rate of 6.4% per year. Which equation represents the value of the car after 4 years?

1) V= 23,900(0.936)(0.936)(0.936)(0.936)
2) V=23,900(1+0.064)⁴
3) V= 23,900(1−0.064)(1−0.064)
4) V= 23,900(0.064)⁴

Answer 1

1) V= 23,900(0.936)(0.936)(0.936)(0.936)

Explanation:

Each year, the car depreciates to 1 -0.064 = 0.936 of its previous value. After 4 years, the original value has been multiplied by this factor 4 times:

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depreciated value = 23,900(0.936)(0.936)(0.936)(0.936)

_____

This could be represented by ...

V = 23,900(1 -0.064)⁴ . . . . . . not an answer choice