Question

A new car is purchased for $32,500. The car depreciates every year ata
rate of 14%. Write an exponential function that represents that situation

Answer 1

Answer:

$y=32500(0.86)^{x}$

Step-by-step explanation:

General exponentially depreciating function is given as

$y= a(1-b)^{x}$------------(1)

Where a is initial value, b is percent depreciation/unit time  and x is time

Here

$a=32,500 \ \ \ b=0.14 \ \ \ and \ \ x \ is \ time \ in \ years$

Substituting above values in equation (1)

$y=32500(0.86)^{x}$

At x=0

$y=32500(0.86)^{0}\\y=32500$

At x=1

$y=32500(0.86)^{1} \\y=27950$