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Michael bought a car for $15,540. He estimates that the car will depreciate by 5% each year. Which function represents this situation? *

Answer :

JeanaShupp

Answer: [tex]f(x) =15540(0.95)^x[/tex]

Step-by-step explanation:

Given , Micheal bought a car for $15,540.

Rate of depreciation = 5% = 0.05 { To convert a percentage into decimal or fraction , we divide it by 100]

The exponential function used to show depreciation in amount or value ina time period of 'x' is given by :-

[tex]f(x)=A(1-r)^x[/tex]

, where A = Initial value

r= rate of depreciation.

As per given , we have

A= $15,540

r= 0.05

Then , Required function : [tex]f(x)=15540(1-0.05)^x=15540(0.95)^x[/tex]

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