Question

Manny Brought a brand new car in 2012 for $28750. if the car depreciates by 12% each year, write n exponential function to model the situation, then find the value of the car in 2018

Answer 1

The formula for exponential decay is 
$y=a(1-r)^{x}$

where  a is the initial value (28750)
r is the rate of decrease (0.12)
x is the time, in this case in years (6 .  2018-2012 = 6 years)

$y=28750(1-0.12)^{6}$

y ≈ 13351.62