Determine whether the growth (or decay)is linear or exponential, and answer the associated question.
-The value of your car is decreasing by 12% per year. If the car is worth $9749 today, what will it be worth in two years?
A) Exponential; $\$ 8614.22$
B) Linear; $\$ 10,918.88$
C) Linear; \$12,088.76
D) Exponential; $\$ 7549.63$

Question

Determine whether the growth (or decay)is linear or exponential, and answer the associated question.
-The value of your car is decreasing by 12% per year. If the car is worth $9749 today, what will it be worth in two years? 
A) Exponential; $\$ 8614.22$
B) Linear; $\$ 10,918.88$
C) Linear; \$12,088.76
D) Exponential; $\$ 7549.63$

Quizplus · Accepted Answer

The value decreases by a percentage (12%) each year, indicating exponential decay. To find the value in two years, apply the exponential decay formula: $P = P_0(1 - r)^t$, where $P_0 = 9749$, $r = 0.12$, and $t = 2$. Calculating gives $P = 9749(1 - 0.12)^2 = 9749(0.88)^2 ≈ 7549.63$.

Determine Whether the Growth (Or Decay)is Linear or Exponential, and Answer