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Write an exponential function to model the situation. The value of a car is 
$18000 and is depreciating at a rate of 
12% per year.

V(t)=18000(.88)^(t)

V(t)=.88(18000)^(t)

V(t)=.12(18000)^(t)

V(t)=18000(.12)^(t)

Write an exponential function to model the situation. The value of a car is $18000 \$ 18000 and is depreciating at a rate of 12% 12 \% per year.\newlineV(t)=18000(.88)t V(t)=18000(.88)^{t} \newlineV(t)=.88(18000)t V(t)=.88(18000)^{t} \newlineV(t)=.12(18000)t V(t)=.12(18000)^{t} \newlineV(t)=18000(.12)t V(t)=18000(.12)^{t}

Full solution

Q. Write an exponential function to model the situation. The value of a car is $18000 \$ 18000 and is depreciating at a rate of 12% 12 \% per year.\newlineV(t)=18000(.88)t V(t)=18000(.88)^{t} \newlineV(t)=.88(18000)t V(t)=.88(18000)^{t} \newlineV(t)=.12(18000)t V(t)=.12(18000)^{t} \newlineV(t)=18000(.12)t V(t)=18000(.12)^{t}
  1. Identify Values: Identify the initial value aa and the rate of depreciation rr. The initial value of the car is $18,000\$18,000, which is the value when t=0t = 0. The rate of depreciation is 12%12\% per year, which means the car loses 12%12\% of its value each year.
  2. Convert to Decimal: Convert the rate of depreciation to a decimal.\newlineTo convert a percentage to a decimal, divide by 100100.\newline12%12\% as a decimal is 12100=0.12\frac{12}{100} = 0.12.
  3. Determine Decay Factor: Determine the decay factor bb. Since the car is depreciating, we subtract the rate of depreciation from 11 to find the decay factor. b=1rb = 1 - r b=10.12b = 1 - 0.12 b=0.88b = 0.88
  4. Write Exponential Decay Function: Write the exponential decay function.\newlineThe general form of an exponential decay function is V(t)=a(b)tV(t) = a(b)^t, where V(t)V(t) is the value after tt years, aa is the initial value, and bb is the decay factor.\newlineSubstitute the values of aa and bb into the equation.\newlineV(t)=18000(0.88)tV(t) = 18000(0.88)^t

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