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Kamila [148]
3 years ago
6

a car purchased for $34,000 is expected to lose value, or depreciate, at a rate of 6% per year.using x for years and y for the v

alue of the car, write the equation that models this situation.after how many years is the car first worth less than $21,500?
Mathematics
1 answer:
Vika [28.1K]3 years ago
3 0

Answer:

y = 34000(1-0.06) ^ t

After 7.40 years it will be worth less than 21500

Step-by-step explanation:

This problem is solved using a compound interest function.

This function has the following formula:

y = P(1-n) ^ t

Where:

P is the initial price = $ 34,000

n is the depreciation rate = 0.06

t is the elapsed time

The equation that models this situation is:

y = 34000(1-0.06) ^ t

Now we want to know after how many years the car is worth less than $ 21500.

Then we do y = $ 21,500. and we clear t.

21500 = 34000(1-0.06) ^ t\\\\log(21500/34000) = tlog(1-0.06)\\\\t = \frac{log(21500/34000)}{log(1-0.06)}\\\\t = 7.40\ years.

After 7.40 years it will be worth less than 21500

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