Create an equation for the value of a car in x years. The car's value is $165,000 and depreciates 10% each year from its initial value .

Question

I think I got the wrong answer but I am unsure

Answer 1

If we start with $165,000 and we are losing 10% of that amount each year, then only 90% is kept per year. Hence, we can represent this relationship as:

V(x) = 165000(1-0.10)^x

V(x) = 165000(0.90)^x

I hope this helped!

Answer 2

Sure! Let's say that V(x) represents the car's value in x years. So if x=3, V(x) will give the value of the car in 3 years. In that case, with your stated assumptions, the equation would be:

V(x) = $165,000 * 0.9^x

where 0.9 represents the depreciation factor per year.

Answer 3

V(t) = value in t years

V(t) = 165,000(1 - 0.10)^t = 165,000(0.90)^t