Problema Solution
Write an exponential decay function to model each situation. then find the value of the function after the given amount of time.
Problem: the value of a car is $18,000 and is depreciating at a rate of 12% per year; 10 years
Answer provided by our tutors
The exponential decay function is
18000(1-12%)^10
We calculate it
18000(1-12%)^10 = 5013.02
So the value is $5013.02