What does the 23,000 represent?

Question

the function f(x) =23,000
(0.92)^x shows the vaule of a new car will depreciate over x years

the number of years the car has been driven.

the starting value of the car.

the annual rate at which the car depreciates.

the decay factor.

Answer 1

In the function $f(x)=23,000(0.92{)}^x$, the value 23,000 represents the starting value of the car. This is the initial value from which the car's depreciation is calculated.

To clarify the other options:

• The number of years the car has been driven is represented by $x$.
• The annual rate at which the car depreciates is 8% (since $1-0.92=0.08$), but that is not represented directly in the equation.
• The decay factor is $0.92$, which indicates that the car retains 92% of its value each year.

Thus, the correct answer is: the starting value of the car.