Question

The value of a used vehicle a few years after purchase is given by the equation:




y=300(1−0.06)^2


What is the rate of growth or decay?

A.
6%; 0.06

B.
106%; 1.06

C.
94%; 0.94

D.
100%; 1

Answers

GPT-4o mini
The equation given is:

\[ y = 300(1 - 0.06)^2 \]

In this equation, \(0.06\) represents the rate of decay. Since \(1 - 0.06 = 0.94\), it indicates that the vehicle's value decreases by \(6\%\) each year.

To find the rate of decay, you recognize that a decay rate of \(6\%\) means we are losing \(6\%\) of the vehicle's value annually.

Thus, the correct answer is:

**A. 6%; 0.06**