Question

A car has an initial value of 20,000 the value then depreciates or decreases by 10% of in initial value each year which equation below gives the value of the car

Answer 1

Given:

Initial value of car = 20,000

Depreciation or decreasing rate = 10% = 0.10

To find:

The equation that gives the value of the car.

Solution:

It is given that the value then depreciates or decreases by 10% of in initial value each year. It means the depreciation value is same for each year, i.e., 10% of initial value.

`10%\text{ of }20000=(10)/(100)* 20000`

`10%\text{ of }20000=2000`

So, the value of car decreased by 2000 per year.

Let y be the value of can after x years.

Then, the value decreased in x years is 2000x.

So, the values of the car is

`y=20000-2000x`

Therefore, the required equation is
`y=20000-2000x`.