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A certain car depreciates at a rate of 15% a year. If the price is $26,000 what will the value be of that car be in 6 years

Respuesta :

A quantity is decreasing exponentially if it decreases by the same percent r in each unit of time t. This is called exponential decay. Exponential decay can be modeled by the equation
y C(1 r)t
where C is the initial amount (the amount before any decay occurs), r is the decay rate (as a decimal), t represents time, and where 0 < r < 1. The expression (1 r) is called the decay factor.
Here, A = P (1 + r)^t

Now, Substitute for following:
P = 26,000
r = -15% = -0.15
t = 6

So, A = 26000 (1 - 0.15)^6

A = 26000 (0.377)
A = 9805.89

In short, Your Answer would be: $9805.89

Hope this helps!
Q&A Education