Chapter 8.1, Problem 12CYU

To determine

To find: The graph of the SUV’s value for the first $20\text{years}$ after the initial purchase.

Explanation of Solution

Given information:

The depreciation rates of the new SUV is $15\%$ and the prize of the new SUV is $\$20000$.

The function for the SUV’s value is obtain as,

  $\begin{array}{l}y=a{b}^t\\ y=\left(20000\right){\left(1-.15\right)}^t\\ y=20000{\left(0.85\right)}^t\end{array}$

Consider the following graph of the SUV’s value for the first $20\text{years}$ after the initial purchase,