Math Problem Statement

A car was valued at $42,000 in the year 1990. The value depreciated to $13,000 by the year 2005.

A) What was the annual rate of change between 1990 and 2005?

Solution

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Math Problem Analysis

Mathematical Concepts

Depreciation
Exponential Decay
Percentage Change

Formulas

Exponential Decay Formula: V(t) = V0 * (1 - r)^t

Theorems

Exponential Growth and Decay Theorem

Suitable Grade Level

Grades 9-12