Question

Ryan bought a used car for $5,000. Each year, the car’s value decreased by 10% of the previous year’s value. Which equation represents the value of Ryan’s car, V, in terms of the number of years, t, since Ryan bought the car?

Answer 1

Based on the problem, the rate of decrease is 10%, hence, the equation that best represents the value of Ryan's car is found in the third option.

$\begin{gathered} V=5000(1-0.1)^t \\ V=5000(0.9)^t \end{gathered}$