Question

Every year after a new car is

Answer 1

Answer: The value of the car after 3 years is $5,333.333

And no, the relationship is not linear, is an exponential decay.

Step-by-step explanation:

We know that every year, the car loses 1/3 of its value.

So if the initial value of the car is V.

After one year, the new value of the car will be:

Value (1 year) = V - (1/3)*V = (2/3)*V

After another year, the value will be:

Value (2 years) = (2/3)*V - (1/3)*(2/3)*V = V*(2/3)^2

Ok, we already can see that this is an exponential decay.

(So no, this is not a linear relationship).

The value equation as a function of the number of years will be:

Value(N) = V*(2/3)^N

Then if the initial cost of a car is $18,000, and we want to know its value after 3 years, we need to replace V by $18,000 and N by 3 in the above equation:

Value(3) = $18,000*(2/3)^3 = $5,333.333