Question

A car is purchased for $28,000. After each year, the resale value decreases by
35%. What will the resale value be after 3 years? Use the calculator provided and round your answer to the nearest dollar.

Answer 1

$\bf \qquad \textit{Amount for Exponential Decay}\\\\ A=I(1 - r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ I=\textit{initial amount}\to &28000\\ r=rate\to 35\%\to \frac{35}{100}\to &0.35\\ t=\textit{elapsed time}\to &3\\ \end{cases} \\\\\\ A=28000(1-0.35)^3\implies A=28000(0.65)^3\implies A=7689.5 \\\\\\ \textit{which rounds up to }7689$