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A new car worth $30,000$30,000 loses 22%22% of its value every year. What does the graph of the value of this car look like?

Question

A new car worth $30,000 loses 22% of its value every year.

What does the graph of the value of this car look like?

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Solution

The graph of the value of this car over time would be a downward sloping curve. Here's how you can visualize it:

  1. On the x-axis, you would have time (in years), starting from 0.
  2. On the y-axis, you would have the value of the car, starting from $30,000.

At year 0, the value of the car is 30,000,soyouwouldhaveapointat(0,30,000, so you would have a point at (0, 30,000).

Every year, the car loses 22% of its value. So, for example, after 1 year, the car would be worth 78% of its original value, or 23,400.Thiswouldberepresentedbyapointat(1,23,400. This would be represented by a point at (1, 23,400).

As you continue this process for each subsequent year, you would see that the points form a curve that slopes downward, representing the decreasing value of the car over time. This is because the car is losing a percentage of its value each year, not a fixed amount, so the amount it loses each year gets smaller and smaller.

This type of graph is known as an exponential decay graph.

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