Question 1019386: What is the rate, constant multiplier, and an equation that represents the situation when Larry buys a truck for $13,500. The value of the truck is expected to decrease at a rate of 20% each year
Found 2 solutions by josgarithmetic, Boreal:
Answer by josgarithmetic(39630)   (Show Source):
You can put this solution on YOUR website! As given in the description, the constant rate is 20%. You can turn this around to show proportion of value kept as each year passes, which is 80%.
The constant multiplier is obviously the initial truck value of 13500 dollar.
Using y as the value each year, t years since initial purchase,
 .
Answer by Boreal(15235)  (Show Source):
You can put this solution on YOUR website! It is 13,500(0.8)^t, where t= the number of years.
The basic formula is
P=Po{1+r)^t, where P is price at a given time t, and Po is where it started, and r is the rate of increase or decrease.
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