Question

A used car has a value of $15,250 when it is purchased in 2012. The value of the car decreases at a rate of 7.5% per year. Write an exponential function that models the value of the car, y, over x years. To the nearest cent, what will be the value of the car after eight years?

Answer 1

7.5% is 3/40. The equation is y=15250(1-3/40)ˣ=15250(37/40)ˣ.
When x=8 this becomes $8173.42.