Web Analytics
Answered

A financial survey estimated that, on average, the retail value of a mid-sized car decreases 8% annually. If the value of a mid-sized car in a particular year is $15,600, which equation represents its value (V) after n years?

Verified Answer :

nicholas2021265

v=15600*(0.92)^n
where v is value and n is years

Answer:

\(V=15600(0.92)^n\) represents its value (V) after n years.

Step-by-step explanation:

Rate of decrease = 8%

Original Value = a = $15600

Time = n years

Now we are supposed to find which equation represents its value (V) after n years

Formula : \(y=a(1-b)^n\)

where a is original value

b is decay rate

n is time

y is value after n years i.e. V

So,  \(V=15600(1-0.08)^n\)

\(V=15600(0.92)^n\)

Hence \(V=15600(0.92)^n\) represents its value (V) after n years.