SOLUTION: A rule of thumb states that cars in personal use depreciate by 9% each year. Suppose a new car is purchased for $30000. What is the difference equation, explicit formula, and value

Click here to see ALL problems on Finance

Question 1188455: A rule of thumb states that cars in personal use depreciate by 9% each year. Suppose a new car is purchased for $30000. What is the difference equation, explicit formula, and value of the car after 5 years?
Found 2 solutions by ikleyn, josgarithmetic:
Answer by ikleyn(52790)   (Show Source):
You can put this solution on YOUR website!
.

In Math, there are two traditional forms to write (to determine) a depreciation function.

One way is to use a linear function;   the other way is to use an exponential function.

THEREFORE, if a Math problem talks about depreciation function,
it MUST determine WHICH ONE of TWO POSSIBLE definitions is used.

It is the way to distinct a mathematically correct formulation from illiterate one . . .

Answer by josgarithmetic(39618)   (Show Source):
You can put this solution on YOUR website!
------------------------------
..., depreciate by 9% each year.
------------------------------

x, each year

Question asks, what is the value for x at 5.