SOLUTION: You bought a used car for $18,000. The value of the car will be less each year because of depreciation. The car depreciates (loses value) at the rate of 12% per year. a. Write an

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: You bought a used car for $18,000. The value of the car will be less each year because of depreciation. The car depreciates (loses value) at the rate of 12% per year. a. Write an       Log On


   

Question 601276: You bought a used car for $18,000. The value of the car will be less each year because of depreciation. The car depreciates (loses value) at the rate of 12% per year.
a. Write an exponential decay model to represent this situation.
b. Estimate the value of your car in 8 years.
Answer by flame8855(424) About Me  (Show Source):
You can put this solution on YOUR website!
a) y = c(1-r)^t
c= 18000, r= 0.12
y=18000(1-0.12)^t
y=18000(0.88)^t
b)
t=8
y= 18000(0.88)^8
y = 6473