Salim purchased a new car for $21,000, and it depreciates in value each year. The function y = 21, 000(1 - 0.15)^x represents the depreciation. He also purchases a motorcycle, which depreciates each year as well. Its depreciation is represented by the function y = 14, 000(1 - 0.09)^x. Graph these two functions using GeoGebra. Which statement best describes when the motorcycle will be worth $7,000?

Question

Salim purchased a new car for $21,000, and it depreciates in value each year. The function y = 21, 000(1 - 0.15)^x represents the depreciation. He also purchases a motorcycle, which depreciates each year as well. Its depreciation is represented by the function y = 14, 000(1 - 0.09)^x. Graph these two functions using GeoGebra. Which statement best describes when the motorcycle will be worth $7,000?

Statement #1: The motorcycle will have a value of $7,000 after roughly 7.3 years.
Statement #2: The motorcycle will have a value of $7,000 after roughly 6.7 years.

Answer 1

After graphing the two functions on GeoGebra, you can see that the motorcycle will be worth $7,000 after roughly 6.7 years. This means that Statement #2 is correct.