Exponential Equations
In exponential relations, we can represents given values like this:
[tex]f(x)=a*c^x[/tex]
- c = growth/decay factor
- a = starting point/y-intercept
Solving the Question
We're given:
- 27,100 dollars = starting point
- Decay factor = 7% per year
⇒ Plug this information into [tex]f(x)=a*c^x[/tex]:
[tex]f(x)=27,100*(0.93)^x[/tex]
Why input 0.93 and not 0.07? Let's think of it this way: To calculate the new price of the car after one year, we find 93% of 27,100.
The dependent variable is the price (y) and the independent variable is the time in years (x).
Therefore, to find the value of the car after 6 years, we plug in 6 as x:
[tex]f(x)=27,100*(0.93)^6[/tex]
Answer
[tex]V=27,100*(0.93)^6[/tex]
