A four-wheeler depreciates 8.5% per year. If the four-wheeler is purchased for $3250, what is the equation of the exponential equation? How much will the four-wheeler be worth in 4 years?

We have a function of the form:

y = A * (b) ^ t

Where,

A: initial amount

b: decrease rate

t: time

Substituting values we have:

y = 3250 * (0.915) ^ t

After 4 years we have:

y = 3250 * (0.915) ^ 4

y = 2278.07 $

Answer:

The equation of the exponential equation is:

y = 3250 * (0.915) ^ t

the four-wheeler will be worth in 4 years а bout:

y = 2278.07 $