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)

y=

1 answer

To model the value of the car after \( t \) years with an initial cost of $15,000 and an annual depreciation rate of 21%, you can use the following exponential decay function:

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

Where:

  • \( y \) is the value of the car after \( t \) years,
  • \( P \) is the initial cost of the car ($15,000),
  • \( r \) is the depreciation rate (0.21 for 21%),
  • \( t \) is the number of years.

Substituting the values into the formula:

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

This simplifies to:

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

So, the function that models the value of the car after \( t \) years is:

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