Question

A used car has a value of $15,250 when it is 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 x of the car over y years. 2 To the nearest cent, what will be the value of the car after eight years?

Answer 1

the given P=15250

r=7.5/100=0.075

t=x

y = 15250*(1 - 0.075)^x

after 8 years we would have

x = 8

y = 15250*(1 - 0.075)^8

y = $8,173.42

Answer: after 8 years the value of the car would be $8,173.42