Acar was valued at $44,000 in the year 1993. the value depreciates to $15,000 by year 2002.
a) what was annual rate of change between 1993 and 2002?

b) assume the car value continues to drop by same percentage. what will value be in year 2007?

A) -$29000/9 years

B) The car has lost its value by year 2007

Step-by-step explanation:

The annual rate of change is given by:

Therefore, the equation of the line that describes this change of value in terms of years passed, is a line with the slope given by this rate of change, and that passes through the value $44000 at year zero. That is:

In the year 2007,  2007-1993= 14 years have gone by, so the car's value can be obtained by replacing x with "14" in the formula for the line:

which being a negative number, means that the car has lost its value.

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