Question

A four-wheeler depreciates 8.5% per year. If the four-wheeler is purchased for $3250, what is the equation of the exponential equation? How much will the four-wheeler be worth in 4 years?

Answer 1

We have a function of the form:
y = A * (b) ^ t
Where,
A: initial amount
b: decrease rate
t: time
Substituting values we have:
y = 3250 * (0.915) ^ t
After 4 years we have:
y = 3250 * (0.915) ^ 4
y = 2278.07 $
Answer:
The equation of the exponential equation is:
y = 3250 * (0.915) ^ t
the four-wheeler will be worth in 4 years about:
y = 2278.07 $