Every year after a new car is purchased, it loses 1/3 of its value
(Depreciation). Let's say that the
new car costs $18,000. What is the
value of the car after 3 years?
Do you think this is a linear
relationship? Explain your
Reasoning

The value of car after 3 years is $5333

It is an exponential relationship.

Given :

Every year after a new car is purchased, it loses 1/3 of its value

one third of value is depreciated. So,

two third of the value is remaining after depreciation .

Let's say that the new car costs $18,000.

The value of cost of new car after 1 year is

Now again the car value is depreciated on second year

The value of cost of car after 2 years is

The value of cost of car after 3 years is

The cost of car after 'n' years is

Its an exponential relationship.

because 2/3 is multiplied 'n' times .

The value of car after 3 years is

Learn more : link

The value of the car after 3 years is $5,333.333

And no, the relationship is not linear, is an exponential decay.

Step-by-step explanation:

We know that every year, the car loses 1/3 of its value.

So if the initial value of the car is V.

After one year, the new value of the car will be:

Value (1 year) = V - (1/3)*V = (2/3)*V

After another year, the value will be:

Value (2 years) = (2/3)*V - (1/3)*(2/3)*V = V*(2/3)^2

Ok, we already can see that this is an exponential decay.

(So no, this is not a linear relationship).

The value equation as a function of the number of years will be:

Value(N) = V*(2/3)^N

Then if the initial cost of a car is $18,000, and we want to know its value after 3 years, we need to replace V by $18,000 and N by 3 in the above equation:

Value(3) = $18,000*(2/3)^3 = $5,333.333

this story was prepared by jim

mccullaugh in los angeles and

al stewart in new york.

new york the colossal success of "top gun" appears to have dramatically altered madison avenue's

perception of corporate sponsorship

of home video projects.

the paramount home video re- lease, featuring a 60- second diet

pepsi spot, was by no means the

first prerecorded video to carry an advertiser's plug, but it was the

first major theatrical release to do so. in the aftermath of the title's

success, paramount is widely ex- pected to ink a similar deal for

"crocodile dundee" or "star trek

iv" or both.

corporate america's new attraccds push british

recording sales

to 19% gain

london fueled by the compact

disk boom, the value of u.k. manu- facturer shipments of recordings

rose 19% in the 12 -month period ended march 1987, according to the

british phonographic industry.

total value of u.k. shipments for

the period was $755 million for all

configurations. (all value figures

are based on an exchange rate of

$1.68 to the pound sterling.)

cd sales totaled 10.7 million units

worth $121.3 million- compared

with 3.7 million units worth $39.5

million in the prior 12 months -and

accounted for two -thirds of the

overall gain in trade value. at present growth rates, says the bpi, cd

sales for calendar 1987 will reach 20

(continued on page 79)

step-by-step explanation: