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?

A 15% depreciation means the car keeps 100% − 15% = 85% of its value each year, so its value is multiplied by 0.85 each year. Starting at $20,000, the function is f(x) = 20,000(0.85)^x. Therefore, the correct choice is A, f(x) = 20,000(0.85)^x.

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