Lyle purchased a motorcycle for $13,430. It depreciates about 4.1% each year. What is the value of the motorcycle after seven years?
+245 Source: http://www.regentsprep.org/regents/math/algebra/ae7/expdecayl.htm
The formula for exponential decay (non-linear) is y = a (1 - r)^x. Where a is the principal(initial) value of the item
r is the rate (in this case the decimal form of the percentage) at which the item decreases
x is the years over which it depreciates
Given the formula we can plug in our values:
a = $13,430
r = .41 *(4.1% /100)*
x = 7
Our equation is : \(y= 13,430(1-.41)^x\)
Now plug 7 in for x and you get y = 13430(1-.41)^7 = $334.26
+245 Source: http://www.regentsprep.org/regents/math/algebra/ae7/expdecayl.htm
The formula for exponential decay (non-linear) is y = a (1 - r)^x. Where a is the principal(initial) value of the item
r is the rate (in this case the decimal form of the percentage) at which the item decreases
x is the years over which it depreciates
Given the formula we can plug in our values:
a = $13,430
r = .041 *(4.1% /100)*
x = 7
Our equation is : \(y= 13,430(1-.041)^x\)
Now plug 7 in for x and you get y = 13430(1-.041)^7 = $10,018.58
Originally when I did this problem I made 4.1% equal to .41 which is wrong 4.1% is equal to 0.041. My new answer is for sure correct.
