Question

A new car worth $20,000 loses 20% of its value every year. Is the value of the car represented by a linear or exponential function?
A) linear
B) exponential
C) both linear and exponential
D) neither linear or exponential

Answer 1

The answer would be:

B) Exponential

Answer 2

B) Exponential. Because it keeps losing 20% of what the previous years amount was so it decreases by a smaller factor each year