CHOOSE TO ANSWER EITHER QUESTION:

Kate purchased a car for $23,000. It will depreciate by a rate of 12% a year. What is the value of the car in 4 years?

a) $13,935.76

b) $12,874.57

c) $13,792.99

OR

A rare coin is currently worth $450. The value of the coin increases 4% each year. Determine the value of the coin after 7 years.

a) $613.98

b) $546.78

c) $592.17

First one: C. Second One:C.

Step-by-step explanation:

Kate purchased a car for $23,000. It will depreciate by a rate of 12% a year. What is the value of the car in 4 years?

a) $13,935.76

b) $12,874.57

c) $13,792.99

To solve this this is an exponential function. The price started at $23,000 and depreciates at 12% so the equation is f(x) = (23,0000)(1-0.12)^4. When calculated results with 13792.99328 which is C.

A rare coin is currently worth $450. The value of the coin increases 4% each year. Determine the value of the coin after 7 years.

a) $613.98

b) $546.78

c) $592.17

To solve this this is also an exponential function. The price started at $450 and  the coin increases 4% each year so the equation is f(x) = (450)(1+0.04)^7. When calculated results with 592.169300656 which is c.