Problema Solution
A used car has a value of $15,250 when it is purchased in 2012. The value of the car depreciates at a rate of 7.5% per year.
Write an exponential function that models the value of the car, y, over x years.
To the nearest cent, what will be the value of the car after eight years?
Answer provided by our tutors
y = 15250*(1 - 0.075)^x
after 8 years we have x = 8
y = 15250*(1 - 0.075)^8
y = $8,173.42
after 8 years the value of the car will be $8,173.42.