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?
Solution
The graph of the value of this car over time would be a downward sloping curve. Here's how you can visualize it:
- On the x-axis, you would have time (in years), starting from 0.
- 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).
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).
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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