Part a)Price of car is $32,000 and the value of Car is depreciating at a rate of 8.5% per year. This means the worth of car is decreasing. Hence it is a decay.
Part b)Worth of car in 5 years.
Current Price = P = $32000
Decay rate = r = 0.085
Time = t = 5 years
Formula to be used:
This means, the worth of car after 5 years will be reduced to $20,523.69Part c)When the car will be worth half of its original amount.Half amount = $16,000
Using the values in above formula, we get
This means, after 7.8 years the car be worth half of what Carson paid
A simple way to look at how to check for equivalent fractions<span> is to do what is called “cross-multiply”, which means multiple the numerator of one </span>fraction<span> by the denominator of the other </span>fraction. Then do the same thing in reverse. Now compare the two answers to see if they areequal<span>.</span>
Your answer should be C :-)