Terrence buys a new car for $20,000. the value of the car depreciates by 15% each year. if f(x) represents the value of the car after x years, which function represents the car’s value? f(x) = 20,000(0.85)x f(x) = 20,000(0.15)x f(x) = 20,000(1.15)x f(x) = 20,000(1.85)x

f(x) = 20,000(0.85)x

Step-by-step explanation:

The question posed is an application of the compound interest problems. The compound interest formula is given as;

where;

A is the amount at the end of n years

P is the initial value of the investment

r is the interest earned on the principal invested

But in our case, the initial value of 20,000 is not earning any interest. The value of the car is depreciating and thus we modify the compound interest formula to become;

we are given the following information;

P = 20,000

r = 15% = 0.15

The value of the car after x years will be;