Question

Angelica bought a new car at a cost of 22,000. The car's value decreases exponentially at the same rate each year and one year later the car's value was 18,480. what is the common ratio?

Answer 1

We are given cost of new car purchased = $22,000.

Car value is decreasing exponentially.

Car value after 1 year = 18,480.

In order to find the common ratio, we need to divide first year value of the car by initial purchased value.

Therefore, common ratio = 18,480/22,000.

Now, we need to convert 18,480/22,000 into simplest fraction.

Dividing top and bottom by 880 we get,

= 21/25.

Therefore, common ratio of decreased car value is 21/25.