Question

A new car is purchased for 19000 dollars. The value of the car depreciates at 11.25% per year. What will the value of the car be, to the nearest cent, after 14 years?

Answer 1

Answer: The answer is 3573.64

Step-by-step explanation:

Exponential Functions:

y=ab^x

a=starting value = 19000

r=rate = 11.25%=0.1125

Exponential Decay:

b=1-r=1-0.1125=0.8875

Write Exponential Function:

y=19000(0.8875)^x

Plug in time for x:

y=19000(0.8875)^14

y= 3573.6388855

Evaluate :

y≈3573.64