A new car is purchased for 20300 dollars. The value of the car depreciates at 9.5% per year. What will the value of the car be,
1 answer:
The initial value stands at 20,300, decreasing annually by 9.5%.
Given that it decreases by 9.5% each year based on the preceding amount, we can apply an exponential decay model.
A 9.5% reduction means multiplying by 91.5% every year.
We express this mathematically. Plugging in 11 years for t yields.
$7,671.18
Given that it decreases by 9.5% each year based on the preceding amount, we can apply an exponential decay model.
A 9.5% reduction means multiplying by 91.5% every year.
We express this mathematically. Plugging in 11 years for t yields.
$7,671.18
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