What does the 23,000 represent?

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.

1 answer

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 10.92=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.