Question

The function f(x)=4500(0.98)^x represents the value in dollars of a vehicle x years after it has been purchased new. What is the average decrease in value per year between years 5 and 10?
Answers:
-$78.16/year
-$3676.83/year
-0.98/year
-$4500/year

Answer 1

YEAR 5: $4067.64 -- down $432.36
YEAR 6: $3986.29 -- down $81.35
YEAR 7: $3906.57 -- down $79.72
YEAR 8: $3828.43 -- down $ 78.14
YEAR 9: $3751.87 -- down $ 76.56
YEAR 10: $3673.83 -- down $ 78.04

The average of the depreciation is $78.76 a year, so the best answer would be the first one.