Question

The following function represents the value of a car, in dollars, after x years:

f(x) = 24,000(0.92)x

What does 0.92 represent?

The present value of the car
The value of the car after x years
The decrease in the value of the car, which is 92%
The decrease in the value of the car, which is 8%

Answer 1

I think it is The decrease in the value of the car, which is 92%

Answer 2

how did you find this answer

Answer 3

You’re almost there - however, the base of the exponent for decay is actually 1 - r, so you’d need to set 1 - r = 0.92, and solve for r, the rate of decay

Answer 4

1 - r = 0.92
1 - 0.92 = r
r = 0.08