Answer: (a) $9211.88
Step-by-step explanation:
We would apply the formula for exponential decay which is expressed as
y = b(1 - r)^t
Where
y represents the value of the bike after t years.
t represents the number of years.
b represents the initial value of the bike.
r represents rate of decay.
From the information given,
b = $15000
t = 3 years
r = 15% = 15/100 = 0.15
Therefore, the exponential function is
y = 15000(1 - 0.15)^t
y = 15000(0.85)^t
The worth after 3 years would be
y = 15000(0.85)^3
y = $9211.88
