SOLUTION: Exponential decay: You buy a car for 21,500. The value of the car decreses every year by 12%(=depreciation rate). What is the value of the car after 5 years? The model to be used t

Algebra ->  Decimal-numbers -> SOLUTION: Exponential decay: You buy a car for 21,500. The value of the car decreses every year by 12%(=depreciation rate). What is the value of the car after 5 years? The model to be used t      Log On


   

Question 765067: Exponential decay: You buy a car for 21,500. The value of the car decreses every year by 12%(=depreciation rate). What is the value of the car after 5 years? The model to be used to solve this problem is:
Value($)= Initial Price(1-depreciation rate) years
Answer by josgarithmetic(39620) About Me  (Show Source):
You can put this solution on YOUR website!
V=21500%2A%281-0.12%29%5E5
V=21500%2A%280.88%29%5E5

You could build that from a year by year sequence of steps.