Question

A new car that sells for $21,000 depreciates (decreases in value) 16% each year. Write a function that models the value of the car. Find the value of the car after 3 years.

$12,447

$11,779

$8,602

$12,899

Answer 1

depreciation equation:
A = P(1 - r)^t
where A is the final amount, P is the principal (initial cost, 21,000), r is the rate of decrease (0.16), and t is time (3 years)

plug in everything and evaluate A