The depreciating value of a semi-truck can be modeled by y = Ao(0.84)x, where y is the remaining value of the semi, x is the time in years, and it depreciates at 16% per year.
What is the value of the truck initially, Ao, and how would the graph change if the depreciation rate was 26% per year?

ANSWERS

2015-10-31 23:32:46

The value of the truck initially, Ao is 83000 1-0.16=0.84 1-0.26=0.74 After one year the value Y=83,000×(0.84)=69,720 Y=83,000×(0.74)=61,420 When you compare the results you will see that the graph would fall at a faster rate to the right because the depreciation rate of 26% is higher than the depreciation rate of 16% Hope it helps

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