you paid $32,500 for a new car, but it depreciates at an 8% rate every year. What would be the function equation ( f(x) )? and how much would it increase for year one, two and three?

Answer 1

The function equation for the depreciation of the car over time can be represented as:

f(x) = 32,500 * (1 - 0.08)^x

where x represents the number of years since the car was bought.

For year one (x = 1),

f(1) = 32,500 * (1 - 0.08)^1
f(1) = 32,500 * (0.92)
f(1) = 29,900

The car's value would decrease by $2,600 in the first year.

For year two (x = 2),

f(2) = 32,500 * (1 - 0.08)^2
f(2) = 32,500 * (0.8464)
f(2) = 27,496

The car's value would decrease by $2,404 in the second year.

For year three (x = 3),

f(3) = 32,500 * (1 - 0.08)^3
f(3) = 32,500 * (0.7787)
f(3) = 25,340

The car's value would decrease by $2,156 in the third year.