Question

The value of a car is

$25,500. It loses 14% of its value every year. Write a function that represents the value y (in dollars) of the car after t years and Estimate the value of the car after 5 years.
Round to the nearest dollar.

Answer 1

The function that we would use for these problems is y=a(1+or-r)^t

The ^ means to the power of. a represents the initial value which is 25,500, 1 always stays the same in the equation. The plus or minus is depended on whether you are gaining or losing so in this case we are losing so we subtract. r represents the rate which is 14%. You always switch the percentage into a decimal, which you can do by moving the decimal 2 places foward which is 0.14. Lastly t represents the time

Your equation is 25,500(1-0.14)^t

Now plug in the time 25,500(1-0.14)^5 = 11,995 or 11,996 rounded to the nearest dollar