Question

Age of car = 4 years. Original cost = $13,850. The current market value is $

Answer 1

Using an exponential function, supposing that the value decays 10% a year, it is found that the current market value is $9,087.

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, supposing a decay of 10% a year, and the original value of $13,850, the parameters are A(0) = 13850, r = 0.1.

Hence, the value of the car in 4 years is given by:

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

$A(4) = 13850(0.9)^4$

A(4) =  9087.

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