SOLUTION: A car was purchased for $20,000; the price of the car decreases by 6% of its purchase price every year. Create a linear model for this scenario given that y the price of the car a

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Question 977630: A car was purchased for $20,000; the price of the car decreases by 6% of its purchase price every year. Create a linear model for this scenario given that y the price of the car after t years.
How can I solve this?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
A car was purchased for $20,000; the price of the car decreases by 6% of its purchase price every year. Create a linear model for this scenario given that y the price of the car after t years.
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Build the equation:
start:: 20,000
after 1 yr:: 20,000-0.06*20,000 = 20,000(1-0.06)
after 2 yrs: 20,000(1-0.06)- 0.06[20,000(1-0.06)] = 20,000(1-06)^2
after 3 yrs: 20,000(1-0.06)^3
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after t years:: y = 20,000(1-0.06)^t
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Note: That is not a linear model; it is an exponential model.
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Cheers,
Stan H.
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