A new car begins to depreciate in value as soon as you drive it off the car lot. Some models depreciate linearly, and others depreciate exponentially. Suppose you purchase a new car for $28,000 and 1 year later its value decreased to $25,760 (that's a decrease of $2240 or 8%).
a) Write a function that could model,
, the total value,
years since purchase as both a linear and exponential function.
Linear:
Exponential:
b) In 5 years, you decide to sell this car. Which type of decpreciation (linear or exponential) would create the GREATEST resell price of the vehicle?
Mathematical reasoning:
Linear decrease over 5 years: $
Exponential decrease over 5 years: $
