we can use formula
[tex] y=ab^x [/tex]
now, we can find a and b
Initially , price is 500
so,
At [tex] x=0,y=500 [/tex]
[tex] 500=ab^0 [/tex]
[tex] a=500 [/tex]
now, we can plug back
[tex] y=500(b)^x [/tex]
At [tex] x=3,y=10 [/tex]
we can use it and find b
[tex] 10=500(b)^3 [/tex]
now, we can solve for b
and we get
[tex] b=0.27144 [/tex]
so,
annual depreciation rate is 27.144%.......Answer
