A four-wheeler depreciates 8.5% per year. If the four-wheeler is purchased for $3250, what is the equation of the exponential equation? How much will the four-wheeler be worth in 4 years?

Respuesta :

We have a function of the form:
 y = A * (b) ^ t
 Where,
 A: initial amount
 b: decrease rate
 t: time
 Substituting values we have:
 y = 3250 * (0.915) ^ t
 After 4 years we have:
 y = 3250 * (0.915) ^ 4
 y = 2278.07 $
 Answer:
 
The equation of the exponential equation is:
 
y = 3250 * (0.915) ^ t
 the four-wheeler will be worth in 4 years about:
 y = 2278.07 $