Andreas buys a new ailboat fo $15,540. He estimates that the boat will depreciate by 5% each year. Which exponential function models this situation?

Globokim8

Globokim8

Answered question

2021-01-19

Andreas buys a new ailboat fo $15,540. He estimates that the boat will depreciate by 5% each year. Which exponential function models this situation?

Answer & Explanation

au4gsf

au4gsf

Skilled2021-01-20Added 95 answers

Given,
Initial price of sailboat, P0=$15,540
Price of the sailboat depreciate by 5% each year.
Thus, price of sailboat after 1 year =P00.05P0=0.95P0
Similarly, price of sailboat after 2 years =0.95P00.05(0.95P0)
=0.95P0(10.05)
=(0.95)2P0
Therefore, price of sailboat after x years =(0.95)xP0
=15,540(0.95)x
Answer:
Then exponential model for the price of boat (y) after x years is
y=15,540(0.95)x

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