SOLUTION: A new car costs $30,000. At the end of each year, the car is worth 85% of its start-of-year value. Write a recursive rule that describes the value of the car. What is the val

Question 1179385: A new car costs $30,000. At the end of each year, the car is worth 85% of
its start-of-year value.
Write a recursive rule that describes the value of
the car. What is the value of the car at the end of 5 years?
Answer by ikleyn(52794) (Show Source): You can put this solution on YOUR website!
.


In such problems, two basic models are applicable: linear and exponential.


These models are DIFFERENT, so an accurate problem's formulation should point which model to use.


I will use exponential model.


Then the recursive rule is


    V(n+1) = 0.85*V(n),   n = 1, 2, 3, . . . , year after year.


    V(after 5 years) = .    Use your calculator.

Solved.

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To see many other similar (and different) solved problems, look into the lesson
- Problems on appreciated/depreciated values
in this site.

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