Question
The value of a car depreciates exponentially over time. you spend 20000 to purchase the car, and three years later, the car value is at 14580.
What is the decay factor (B-value) of the car? Show work
What is the decay factor (B-value) of the car? Show work
Answers
Anonymous
v = V e^kt
v = 20,000 e^k t
when t = 3, v = 14,580
14,580 = 20,000 e^3 k
.729 = e^3 k
ln (.729) = 3 k
k = -.31608 / 3 = -0.105
so
v = 20,000 e^-0.105 t
v = 20,000 e^k t
when t = 3, v = 14,580
14,580 = 20,000 e^3 k
.729 = e^3 k
ln (.729) = 3 k
k = -.31608 / 3 = -0.105
so
v = 20,000 e^-0.105 t