Question

For tax purposes, a car rental company assumes each car in their fleet depreciates by 6% per year. If the initial value of a car is $38,800.00, what will the value be when the car is 10 years old?
Options:

a.) $20,898.27
b.) $31,702.42
c.) $28,612.06
d.) $62,694.80

Answer 1

The value of a car after 10 years be $20898.27 if the car rental company assumes each car in their fleet depreciates by 6% per year option (a) $20898.27 is correct.

What is an exponential function?

It is defined as the function that rapidly increases and the value of the exponential function is always a positive. It denotes with exponent $\rm y = a^x$

where a is a constant and a>1

We can solve this problem by exponential function:

The word  depreciate means the price is decreasing.

We can find the value be when the car is 10 years old:

p = 38800(1 - 0.06)¹⁰

p = 38800(0.94)¹⁰

p = 20898.266 ≈ $20898.27

Thus, the value of a car after 10 years be $20898.27 if the car rental company assumes each car in their fleet depreciates by 6% per year option (a) $20898.27 is correct.

Learn more about the exponential function here:

brainly.com/question/11487261

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