Question

Shannon's new car sold for $28,000. Her online research indicates that the car will depreciate exponentially at a rate of 5 ¼ % per year. Write the exponential depreciation formula for Shannon's car.

Answer 1

Answer:

P = 28,000(0.945)^y

where P is the price of the car after y years of purchase

Step-by-step explanation:

The rate of decrease is 5 1/4 % per year

This is same as 5.5% (5.5/100 = 0.055) per year

The exponential equation will be ;

P = 28,000( 1 - 0.055)^y

P = 28,000(0.945)^y

where y is the number of years after the year of purchase