A motor scooter purchased for $1,000 depreciates at an annual rate of 15%. Write an exponential function, and graph the function. Use the graph to predict when the value will fall below $100.

Question

anonymous · Answer

A motor scooter purchased for $1,000 depreciates at an annual rate of 15%. Write an exponential function, and graph the function. Use the graph to predict when the value will fall below $100.

zpupster · Answer

f(t) = a(1 – r)t
Substitute 1,000 for a and
0.15 for r.
f(t) = 1000(1 – 0.15)t
f(t) = 1000(0.85)t