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Veseljchak [2.6K]
3 years ago
8

Ed's new car has a value of $23,500, but it is expected to depreciate at a rate of 7.5% per year. If you were to write an expone

ntial decay function to represent this situation, what would the decay factor be?
Mathematics
1 answer:
Delicious77 [7]3 years ago
3 0

Answer:

0.925 or 92.5%

Step-by-step explanation:

y=a(1-b)^x

decay factor is 1-b <- and the part we care about

b is 7.5%=0.075

1-0.075

=0.925

I'm a little rusty on exponential rates, but I hope this helps!

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