Question

Cars lose value over time. Every decade, their value decreases by 1/2. A car is bought for $2000. How much is it worth after 1 decade?

Answer 1

$1000

Explanation:

We can model the price of a given car with the formula
`P=I\cdot(1)/(2)^t`, where P is the current price of the car, I is the initial price, and t is the amount of time in decades that the car has been around. Plugging 2000 in for I and 1 in for t, we get:

`P=2000\cdot(1)/(2)^(t)=2000\cdot(1)/(2)=1000`