Sanjeet bought a new car at the dealership for 28000 It is e

Sanjeet bought a new car at the dealership for $28,000. It is estimated that the value of the car will decrease 8% each year. Which exponential function models the value v of the car after t years? A. v = 28,000(1.08)^t B. v = 28,000(0.92)^t c. v = 28,000(1.8)^t D. v = 28,000(0.2)^t

Solution

The value ( v ) of the new car is $ 28000. After one year, v reduces by 8 % so that v = 28000 ( 1- 0.08) = 28000( 0.92) . At the end of the 2nd year, the value of the car is v = 28000 ( 0.92)(0.92) = 28000(0.92)² . Thus, after t5 number of years, the value of the car will be given by v = 28000 (0.92)^t .The correct answer is B.