Question

A $22,000 truck depreciates 14% per year. Find the value of the truck after 8 years. Round to the nearest cent.

Answer 1

Answer:

$\ 6,582.79$

Exponential Decay

Step-by-step explanation:

we know that

The equation of a exponential decay function is given by

$y=a(1-r)^x$

where

y is the value of the truck

x is the number of years

a is the initial value

r is the rate of change

we have

$a=\ 22,000\\r=14\%=14/100=0.14$

substitute

$y=22,000(1-0.14)^x$

$y=22,000(0.86)^x$

Find the value of the truck after 8 years.

For x=8 years

substitute in the exponential decay function

$y=22,000(0.86)^8=\ 6,582.79$