Question

A new car is purchased for 19000 dollars. The value of the car depreciates at 11.25% per year. What will the value of the car be, to the nearest cent after 14 years?

Answer 1

Answer: 3573.64

Step-by-step explanation:

Exponential Functions:

$y = ab^{x}$

a=starting value = 19000

r=rate = 11.25%=0.1125

Exponential Decay:

b=1-r=1-0.1125=0.8875

Write Exponential Function:

$y=19000(0.8875)^x$

Plug in time for x:

y=19000(0.8875)^14

y= 3573.6388855

Evaluate :

y=3573.64

Answer 2

Answer: 11.25% depriciation means 11.25% amount decrases per year.

i.e for 1year (1-0.1125)19000=0.8875*19000

so for 14 years multiply 0.08875 14 times to 19000.

Your answer will be arrived.

If any doubt comment.

Step-by-step explanation: