Question

Nina's car exponentially depreciates at a rate of 8% per year. If Nina bought the car when it was 7 years old for $14,000, what was the original price of the car?​

Answer 1

And solving for the initial amount we got:

So then the original price for the car would be approximately 18263.539$

Explanation:

For this case we can use the exponential model given by:

Where:

represent the initial amount for the car

represent the exponential growth/decay rate

t represent the number of years. With t =0 at the begin

After 6 year we have that t =6, and we know this condition:

So then we can use the exponential model formula and the condition given and we have this:

And solving for the initial amount we got:

So then the original price for the car would be approximately 18263.539$