Question

Sammy bought a new car. The depreciation equation is given by f(x) = 30,000(.85)x, where x represents the number of years since the purchase of the car, and f(x) represents the value of the car. By what percent does Sammy's car depreciate each year

Answer 1

Answer:

Depreciation rate = 15%

Step-by-step explanation:

We are given a formula that that calculates the present value of a car after taking care of depreciation rate. The formula i sgiven below:

f(x) = 30,000(0.85)x

Where

Present value of car = f(x)

price at which car was bought originally =30,000

Number of years = x

Depreciation rate = 1 - 0.85 = 0.15 = 15%

The depreciation rate of the car is 15 percent of the price of car in the last year i.e if originally price of the car was 100 rupee after 1 year it would be 85 rupees and after another year it would be 72.25 and so on.

So, our depreciation rate is 15% percent