Question

The cost of a new car is $22000. Its value is depreciating at a rate of 15% per year.

(5 Marks)
a) Write the equation of the value of the car over t years. State your variables.


b) What is the value of the car after 10 years?

Answer 1

Explanation:

Losing 15 percent means it retains 85 percent per year (.85 in decimal)

a) Value = 22 000 ( .85)^t

b) put in t = 10 and compute value