A $7000 motorcylce depreciates at 10% each year. Which value would represent the initial amount of the exponential function that models this situation?

Question

Mathematics

Jeffrey Moyer

31 October, 14:25

A $7000 motorcylce depreciates at 10% each year. Which value would represent the initial amount of the exponential function that models this situation?

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Answers (1)

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Mara Dorsey · Answer 1

The "initial amount" is $7,000, the price of the motorcycle when new.

The exponential function in question is V = $7000 (1-0.1) ^n, where n is the number of years elapsed since the purchase of the cycle.