A(t) = a(1 + r)tfor compounding yearly. A(t) = Pertfor continuous compounding.
Write the function for and then evaluate for 5 years. A $12,500 car depreciates 9% each year.

The first thing we must do for this case is to identify the function that models the table.We have a function of the form:

 Where,

 m: slope of the line

 b: cutting point with the y axis

 We observe that for x = 0 the value of the function is f (0) = 3/2. From here, it is concluded:

 Then, the change of rate is constant and equal to 1/2, therefore,

 So, the function is:

 Therefore, we have:

 statements that are true of the given function: