Question

A $7000 motorcylce depreciates at 10% each year. Which value would represent the initial amount of the exponential function that models this situation?

Answer 1

The "initial amount" is $7,000, the price of the motorcycle when new.

The exponential function in question is V = $7000(1-0.1)^n, where n is the number of years elapsed since the purchase of the cycle.