Bryan purchases a new boat. The expression below represents the value of the boat after x years. 22000(.88)^(x+2) Which statement is true?A.The price of the boat decreases by 88% every year.B.The price of the boat increases by 88% every year.C.The price of the boat decreases by 12% every year.D.The price of the boat increases by 12% every year.
Accepted Solution
A:
For this case we have an equation of the form: [tex]y = A * (b) ^ x
[/tex] Where, A: initial price b: rate of change x: time When 0 <b <1, then the function decreases. For this case we have the following function: [tex]y = 22000 (.88) ^ (x + 2)
[/tex] Where, [tex]b = 0.88
[/tex] We observe that the function decreases. The percentage of decrease is given by: [tex](1-0.88) * 100 = 12
[/tex] Answer: C.The price of the boat decreases by 12% every year.