Question

Nichole bought a new car. the depreciation equation is given by f(x)=27,000(.86)^x,where x represents the number if years since the purchase of the car, and f(x) represents the value of the car. by what percent does Nicholes car deprecute each year?

Answer 1

We have the following:

The formula that represents this situation is the following

$A=P\cdot(1-r)^x$

Where r is the depreciation rate, if we equate this part of education with the given of the statement we are left

$\begin{gathered} 1-r=0.86 \\ \text{solving r} \\ r=1-0.86 \\ r=0.14 \end{gathered}$

Therefore the depreciation rate is 0.14 or 14%