Question

Question

Matt purchases a used car for $7000. The value of the car decreases at a rate of 12% per year.

Choose the exponential equation that represents this situation.

(1 point)
Responses

y=7000(0.88)x
y is equal to 7000 times 0 point 8 8 to the x th power

y=7000(1.12)x
y is equal to 7000 times 1 point 1 2 to the x th power

y=7000−12x
y is equal to 7000 minus 12 x

y=7000(0.12)x

Answer 1

To model the depreciation of the car's value over time, we can use the exponential decay formula. Since the car decreases in value by 12% each year, we retain 88% of its value each year (100% - 12% = 88%). Thus, the remaining value as a fraction is 0.88.

The equation representing the value (y) of the car at time (x) in years is given by:

\[ y = 7000(0.88)^x \]

So the correct answer is:

y = 7000(0.88)^x