Question

a motorcycle is depreciating at 13% per year, every year. A students $10,900 motorcycle depreciating at this rate can be modeled by the equation V(t)=10,900(0.87)t. what is an equivalent equation to this vehicle as a monthly depreciation and. using the equation, what is the motorcycle worth (rounded to the nearest hundred dollar) 6 years after purchase?

Answer 1

I can't find the answer choices, but we can still work without them

to convert a 13% depreciation per year to a monthly rate, simply divide 13% by 12

from there, 1 - (13% / 12) gives you the b term in the equation, which will replace 0.87 in the original equation

now, since t now represents the # of months, take the original equation and multiply the t in the exponent by 12

the final result should be your equation in terms of months, t.

using the equation, 6 years = 6 * 12 = 72 months, so plug in t = 72 into the equation evaluate V(t)