SOLUTION: Bryan bought a brand new car worth 1.2 million pesos. Every year the value of the car depreciates 15% of its previous value. (Use the Exponential Decay Formula) a. Model the dep

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: Bryan bought a brand new car worth 1.2 million pesos. Every year the value of the car depreciates 15% of its previous value. (Use the Exponential Decay Formula) a. Model the dep      Log On


   

Question 1175532: Bryan bought a brand new car worth 1.2 million pesos. Every year the value of
the car depreciates 15% of its previous value. (Use the Exponential Decay
Formula)
a. Model the depreciation value of the car as a function of time.
b. How much will the car be worth after five years?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
Every year the value of the car depreciates 15% of its previous value.
0r is worth 85% of its previous value.

Depreciated Value = 1.2M(.85)^n

After five years: 
 Depreciated Value = 1.2M(.85)^5 = .532446M Or 532,446 pesos

Wish You the Best in your Studies.