The value of a car is decreasing by 9% per year. If the car is worth $9,000 today, what will it be worth in two years? Is the decay linear or exponential?
$9000 x [100% - 9%]^2 =$9000 x 0.91^2 =$7,452.90 - price of the car after 2 years. The decay is exponential because of 0.91^2.