posted by Kayla on .
The depreciation rate, r, for a $50,000 news car is given by the function r = 1 - (V/50,000)^(1/5), where V is the value of the car when it is five years old.
a) What is the depreciation rate for a $50,000 BMW that is worth $28,000 after 5 years? (I already found the answer to this: 10.95%)
b) Write V as a function of r (Help me answer this part!)
(V/50,000)^(1/5) = 1-r
V/50,000 = (1-r)^5
V = 50,000 (1-r)^5
What did you do with the exponent?
how do you do part a?
Steph, I raised both sides of the equation to the fifth power.
r = 1 - (28/50)^.2
= 1 - .56^.2
= 1 - .89
= .1095 or 10.95%