What does the 23,000 represent?

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

the annual rate at which the car depreciates.

the starting value of the car.

the number of years the car has been driven.

the decay factor.

1 answer

In the function \( f(x) = 23,000(0.92)^x \), the value of 23,000 represents the starting value of the car. This is the initial price of the new car before any depreciation occurs. As \( x \) increases (representing the number of years the car has been driven), the value of the car decreases due to depreciation, which is modeled by the factor \( 0.92 \).