solve for y=a•b^x formula

Question

you purchased a car for $1900. the car loses 12% if it’s value when you drive it off the lot. Then, the car depreciates at a rate of 9.4% per year. what is the value of A in the function that represents the situation above? y=a•b^x

Answer 1

So, if the car loses 12%, we're now at 88%, right?

 

0.88(1900) = 1672

 

A = 1672

 

It doesn't ask, but the next year, the value is 90.6% of the year before. In one year, 1672(0.906). The next year, 1672(0.906)(0.906), etc.