Question

Exponential Growth/Decay Function The value of a car is $21,500. It loses 12% of its value every year.

(a) Write a function that represents the value y (in dollars) of the car after x years.
(b) Use the function to estimate the value of the car after 6 years. (round your answer to the nearest whole number)

Answer 1

(a) 21500(0.88) ᣔx

y = A(1-r) ᣔx

= 21500 (1-0.12) ᣔx

= 21500(0.88) ᣔx

(b) $9,985

21500(0.88) ᣔ6 = 9985

· 0.88ᣔ6 = 0.46440408

· 21500 * 0.46440408 = 9984.68 -> 9985