4. Exponential Depreciation

Last updated over 1 year ago
8 questions
1

Draw a quick sketch of both a linear depreciating line and an exponentially depreciating line

1

If a vehicle depreciates by the same __________ every year, then it is an exponential model.

1

Predict the value of a 20 year old Audi whose initial value was $59,000 and the depreciation rate is 15%.

Draw it out or upload a screenshot of your Desmos calculator

1

How much will a $22,000 vehicle be worth after a year if it depreciates by 20% within the first year?

1

A Toyota Corolla has a low depreciation rate, followed by even lower depreciation rates. Within the first year of a Corollas’s lifespan, the vehicle is known to have a 10% depreciation rate. After the first year, the vehicle has a 8% depreciation rate. If the vehicle's initial value is $19,000, what is the predicted value after 6 years?

1

A Nissan Leaf has a very high initial depreciation rate, followed by moderate depreciation rates. Within the first year of a Leaf's lifespan, the vehicle is known to have a 25% depreciation rate. After the first year, the vehicle has a 12% depreciation rate. If the vehicle's initial value is $31,000, what is the predicted value after 10 years?

1

A Toyota Tacoma has a very low depreciation rate, followed by even lower depreciation rates. Within the first year of a Tacoma's lifespan, the vehicle is known to have a 8% depreciation rate. After the first year, the vehicle has a 6% depreciation rate. If the vehicle's initial value is $44,000 , what is the predicted value after 3 years?

1

Does it make more sense to use a linear function or an exponential function to model the depreciation of a vehicle. Explain your answer