A new car that costs $15,000 depreciates 21% each year. Write a function to model the value of the care after t amount of years. (2 points)

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1 answer

To model the depreciation of the car, we can use the exponential decay formula. The value of the car after \( t \) years can be calculated using the formula:

\[ y = P(1 - r)^t \]

where:

  • \( y \) is the value of the car after \( t \) years,
  • \( P \) is the initial value of the car,
  • \( r \) is the depreciation rate (in decimal form),
  • \( t \) is the number of years.

Given:

  • The initial cost of the car \( P = 15,000 \)
  • The depreciation rate \( r = 21% = 0.21 \)

The equation becomes:

\[ y = 15000(1 - 0.21)^t \]

This simplifies to:

\[ y = 15000(0.79)^t \]

So the function to model the value of the car after \( t \) years is:

\[ y = 15000(0.79)^t \]