Question

Colleen's car is depreciating at a rate of 9% per year. she paid $24,500 for it in 2010
a) write a function to model the value of the car in t years

Answer 1

so we have
V = Vi (1 - r)^t
where v is value
Vi is initial value
r is rate
and t is time in years

V = 24500(1-.09)^t
V = 24500(.91)^t

Answer 2

Ohh so its like when its increasing, but a 1- instead of a 1+?

Answer 3

correct....since this would be exponential decay...it is 1 - the rate....instead of exponential growth being 1 + rate

Answer 4

Thanks! Do you mind helping me in another question; ill post it

Answer 5

yeah sure...if i can that is