Question

errence buys a new car for $20,000. The value of the car depreciates by 15% each year. If f(x) represents the value of the car after x years, which function represents the car’s value?

f(x) = 20,000(0.85)x
f(x) = 20,000(0.15)x
f(x) = 20,000(1.15)x
f(x) = 20,000(1.85)x

Answer 1

f(x) = 20,000(0.85)^x

Explanation: A 15% annual decrease leaves 85% each year, so multiply by 0.85 each year: f(x)=20000*(0.85)^x (after 1 year: 20000·0.85 = 17,000).