Practice #1
Tom bought a new truck at a cost $24,000. The car depreciates approximately 14% of its value each year. What is the value of the truck after 10 years? (Remember to change percent to decimal and subtract from 1 to find the decay factor.)
y = abx
a =
b =
x =
Answer:
a = 24,000
b = 0.86
x = 10
Now, solve. Round your answer to the nearest cent.
y = abx =
Answer = $5,311.24
Practice #2
A computer valued at $5000 depreciates at the rate of 21.2% per year. What is the value of the computer after 1 year? (Remember to change percent to decimal and subtract from 1 to find the decay factor.)
y = abx
a =
b =
x =
Answer:
a = 5,000
b = 0.788
x = 1
Now, solve.
y = abx =
Answer = $3,940
Practice #3
The value of a computer has a decay factor of 0.80 per year. After 3 years, the computer is worth $2000. What was the original value of the computer. (Remember to change percent to decimal and subtract from 1 to find the decay factor.)
y = abx
a =
b =
x =
Answer:
a = 2,000
b = 0.8
x = 3
Now, solve. Round your answer to the nearest cent.
y = abx =
Answer = $3,906.25
Practice #4
Suppose you buy a new car for $32,000. The value of the car decreases (depreciates) by 20% per year. Write an equation to model the value of the car x years after you buy the car.
y = 32,000( )x
Answer: y = y = 32,000(0.80)x
Find the value of the car after 6 years. $
Answer: $8,388.61
 |