Car value at the time of purchase $15, 250 (2012) Rate of depreciation 7.5% 1) y = 15250 ( 1- 0.075)^x y = 15250 (0.925)^x (x tis the number of years that passed since purchase)
a: the initial price of the used car b: decreasing percent (decay ratio in decimal) x: number of years y: the value of car at a given year [tex]y=a(1-b)^x\\~\\~\\y=15250(1-0.075)^x\\~\\~\\y=15250(0.925)^x[/tex]
That is for part 1
Part 2: after 8 years plug in x=8 into the equation that we've just formed [tex]y=15250(0.925)^8[/tex]
