Answer: 0.79
Step-by-step explanation:
Given: The cost price of car = $19,000
The rate of depreciation = 21 % = 0.02
The exponential decay equation (depreciation) is given by :-
[tex]y=Ab^x[/tex], where A is the initial amount and b is the decay factor for x years such that [tex]b=(1-r)[/tex], where r is the rate of decay.
If we substitute the value of r , we get
The decay factor =[tex]b = (1-0.21)=0.79[/tex]
