Question

A new car is purchased for 21,800 dollars. The value of the car depreciates at a rate of 9.5% per year. Which equation represents the value of the car after 5 years?
ur m

Answer 1

Using an exponential function, it is found that the equation that represents the value of the car after 5 years is:

$A(5) = 21800(0.905)^5 = 13234.25$

What is an exponential function?

A decaying exponential function is modeled by:

$A(t) = A(0)(1 - r)^t$

In which:

• A(0) is the initial value.

• r is the decay rate, as a decimal.

In this problem, the car is purchased for 21,800 dollars, and it's value deprecites 9.5% per year, hence the equation for it's value after t years is given by:

$A(t) = A(0)(1 - r)^t$

$A(t) = 21800(1 - 0.095)^t$

$A(t) = 21800(0.905)^t$

After 5 years, the value is given by:

$A(5) = 21800(0.905)^5 = 13234.25$

More can be learned about exponential functions at brainly.com/question/25537936