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The value of a car is how much the car is worth. The equation below models the v

ID: 3198639 • Letter: T

Question

The value of a car is how much the car is worth. The equation below models the value of a car over time. 11. V 24,000 (0.84) where: V the value in dollars tthe age of the car in years Which of the statements below best describes this situation? (a) A $24,000 car increases in value by 16% each year (b) A $24,000 car decreases in value by 84% each year. (c) A $24,000 car increases in value by 84% each year. (d) A $24,000 car decreases in value by 16% each year (e) A $24,000 car decreases in value by 8.4% each year.

Explanation / Answer

V = 24000 (0.84)t

Differentiating with respect to t

=> dV/dt = 24000 * t * (0.84)t-1

t = 1

=> dV/dt = 24000 * 1 * (0.84)1-1

= 24000 * 0.84

= 84/100 * 24000.

Therefore, the car increases in value by 84% each year.