Question

Mario bought a new car for $25,000. The value of the car is decreasing at a rate of 12.5% every year. After 3

Answer 1

Answer:

$16,748

Step-by-step explanation:

we know that

The equation of a exponential decay function is equal to

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

where

y is the value of the car

x is the number of years

a is the initial value

r is the rate of change

In this problem we have

$a=\ 25,000\\r=12.5\%=12.5/100=0.125$

substitute

$y=25,000(1-0.125)^x$

$y=25,000(0.875)^x$

For x=3 years

substitute

$y=25,000(0.875)^3=\ 16,748$