Given:
Initial value of new car = $17,500
Depreciation rate = 4.6%
To find:
The value of car after 4 years.
Solution:
The exponential decay model is
[tex]y=a(1-r)^t[/tex]
where, a is initial value, r is decreasing rate and t is time in years.
Substitute a=17500, r=0.046 and t=4 in the above equation.
[tex]y=17500(1-0.046)^4[/tex]
[tex]y=17500(0.954)^4[/tex]
[tex]y=17500(0.8283111)[/tex]
[tex]y=14495.44425[/tex]
[tex]y\approx 14495.44[/tex]
The value of car after 4 years is $14495.44.
Therefore, the correct option is D.
