Question

Seamus bought a car that originally sold for $40,000. It exponentially depreciates at a rate of 7.75% per year. Write the exponential depreciation equation for this car.

Answer 1

Answer:

The exponential Depreciation equation for the car is $y=4000(1-0.0775)^x$.

Step-by-step explanation:

Given:

Original Value = $40,000

Depreciation rate = 7.75%

We need to write the exponential depreciation equation for this car.

Solution:

Now we know that the exponential function is given by;

$y=P(1-r)^x$

where;

$y$  ⇒ Value after 'x' years

$P$ ⇒ Original Value

$r$  ⇒ Depreciation Rate

$x$  ⇒ Time period.

Now substituting the given values we get;

$y=4000(1-0.0775)^x$

Hence The exponential Depreciation equation for the car is $y=4000(1-0.0775)^x$.