Question

A used car has a value of 15,250 when it’s purchased in 2012. The value of the car decreases at a rate of 7.5% per year

1. Write an exponential function that models the value of the car , y, over x years

2. To the nearest cent what will be the value of the car after eight years

Answer 1

p=15250

r=7.5/100=0.075

y = 15250*(1 - 0.075)^x

after 8 years it would be

x = 8

y = 15250*(1 - 0.075)^8

y = $8,173.42

after 8 years the value of the car is going to be $8,173.42