Penny bought a new car for $25,000. The value of the car has decreased in value at rate of 3% each year since. Let x = the number of years since 2010 and y = the value of the car. What will the value of the car be in 2020? Write the equation, using the variables above, that represents this situation and solve the problem, showing the calculation you did to get your solution. Round your answer to the nearest whole number.
We have the equation y(x):
y(x) = 25,000(0.97)^x <-- Since a 3 % decrease is the same as multiplying the starting value by 0.97
The problem asks for y(2020). So x = 2020 - 2010 = 10.
y(10) = 25,000(0.97)^10
y(10) = 25,000(0.73742412689)
y(10) = 18,435.60
We have the equation y(x):
y(x) = 25,000(0.97)^x <-- Since a 3 % decrease is the same as multiplying the starting value by 0.97
The problem asks for y(2020). So x = 2020 - 2010 = 10.
y(10) = 25,000(0.97)^10
y(10) = 25,000(0.73742412689)
y(10) = 18,435.60