A motorcycle cost $12,000 when it was purchased. The value of a motorcycle decreases by 6% each year. Find the rate of decay each month and select the correct answer below.A. −0.005143%B. −0.5143% <------ CORRECT ANSWERC. −0.005%D. −0.5%I LOOKED EVERYWHERE FOR THIS ANSWER AND COULDN'T FIND IT, I TOOK THE TEST AND THIS WAS THE CORRECT ANSWER!
Accepted Solution
A:
The original cost is $12000. The value decreases by 6% in 12 months (1 year), so the cost after 12 months is (1 - 0.06)*12000 = $11,280
Let k = the percent rate of decay each month Let t = months Model the value as [tex]V = 12000 e^{ \frac{k}{100}t} [/tex]