Answer:
The value of the car after four year is $9396.108 .
Option (b) is correct i.e about $9400 .
Step-by-step explanation:
The exponential decreasing function is given by
[tex]y = a (1-r)^{t}[/tex]
Where a is the initial value , r is the rate of interest in decimal form and t is the time in years .
As given
Mr.henry buys a car for $18,000. the value of the car decreases about 15% each year. after 4 years .
a = $18000
15% is written in the decimal form .
[tex]= \frac{15}{100}[/tex]
= 0.15
t = 4 years
Putting all the values in the formula
[tex]y = 18000(1-0.15)^{4}[/tex]
[tex]y = 18000(0.85)^{4}[/tex]
[tex]y = 18000\times 0.522006[/tex]
y = $9396.108
Therefore the value of the car after four year is $9396.108 .
Option (b) is correct i.e about $9400 .
