A car depreciates at a rate of 15% per year. If the initial value of the car is $30,000, the value of the car after 3 years can be expressed as . The value of is _________.
Answer & Analysis
Analysis
Question Analysis
This problem assesses the understanding of exponential decay and the ability to identify the decay rate.
Key Concept Explanation
Exponential decay is characterized by a quantity decreasing by a fixed percentage over each equal time period. The general model is , where is the periodic decay rate.
Step-by-step Solution
1. Identify the given information: Initial value
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