Question

Write the exponential equation for this scenario. Mike buys a car for $45,000.00. The cars value depreciates (loses value) at a rate of 18% per year.
​

Answer 1

Answer:

$A=45000(0.82)^t$

Step-by-step explanation:

Given data

P= 45,000

rate= 18%

Recall the expression for the compound interest

$A=P(1+r)^t$

Since we are talking of depreciation

$A=P(1-r)^t$

Substitute

$A=45000(1-0.18)^t\\\\A=45000(0.82)^t$

Hence the exponential function is

$A=45000(0.82)^t$