4 years ago

What is the value of the truck initially, Ao, and how would the graph change if the depreciation rate was 15% per year?

1 answer:

8 0

No. of years = y, cost price=c
value function = V(y)= c*[(0.85)^y]

as y increases, V decreases exponentially.

at y=0 , V=c.

so, the graph looks like [y,V(y)] shown in attachment

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