Answer:
Option 4 - 7%
Step-by-step explanation:
Given : The function [tex]P(t) = 5000 (0.93)^t[/tex] is the value of a motor scooter t years after it is purchased.
To find : Which of the following values show the annual depreciation of the value of the motor scooter?
Solution :
We are given a function p(t) which is represented as:
[tex]P(t) = 5000 (0.93)^t[/tex]
Where, p(t) is the value of a motor scooter t years after it is purchased.
Depreciation is the amount that has been deducted from the cost of an item.
The rate of change is 1-0.93=0.07 i.e. 7%.
So, The function P(t) has 7% of the amount has been deducted each year and the value of the motor scooter is 93% of the amount of the previous year.
Therefore, The annual rate of depreciation is 7%.
So, option 4 is correct.
