Answer :
Answer:
The value of the car is 0.94 times the value of the car the previous year.
Answer:
Option C is correct
The value of the car is 0.94 times the value of the car the previous year.
Step-by-step explanation:
Given the function:
[tex]p(t) = 24,525(0.94)^t[/tex]
where,
p(t) represents the value of a new car
t is the number of years.
We have to find the value 0.94 represent in this situation.
For t =0 years.
Initial value of car p(0) is 24,525
For t = 1 years
[tex]p(1) =24,525 \cdot 0.94[/tex]
For t = 2 years
[tex]p(2) =24,525 \cdot (0.94)^2[/tex] and so on...
Since;
[tex]\frac{p(2)}{p(1)} = 0.94[/tex]
⇒[tex]p(2) = 0.94 \cdot p(1)[/tex]
In general:
[tex]p(t) = 0.94 \cdot p(t-1)[/tex] where, t is the number of years.
⇒the value of the car is 0.94 times the value of the car the previous year.