Question

Nathan has just bought a new car. He models the value, V, in dollars, of the car after t years as V(t) = 21,000(0.861)t. Based on this model, by what percent does the value of Nathan's car decrease each year?

Answer 1

Answer:

13.9%

Step-by-step explanation:

The value of car is modeled as:

$V(t)=21,000(0.861)t$

Here we can see that, each year Nathan has considered 0.861 of the previous year value or we can say that Nathan has considered 86.1% of the previous year value. So,

$100-86.1=13.9$

We subtract the percentage value considered from 100 to find out the percentage decrease in the value of the car.

The value of new car is decreasing by 13.9% each year.