Question

Leo's mom purchased a car for $32,000. The value of her car decreases by 14% annually. You can use a function to describe the value of the car x years since Leo's mom bought it.
Is the function linear or exponential? make an equation that best represents the function

Answer 1

The function is exponential because the car loses a fixed percentage each year (not a fixed dollar amount).

V(x) = 32000(0.86)^x

(where x is the number of years since purchase; you can also write 32000(1 − 0.14)^x).