4
QuizMultiple Choice

Exponential Depreciation — Quiz

Question 4 • Advanced Financial Algebra

A laptop is purchased for $2,000 , and it loses 20% of its value each year. What equation models the value of the laptop after x years?

Answer
A
y is equal to 2 comma 000 minus 0 point 2 x
B
y is equal to 2 comma 000 times open paren 1 minus 0 point 2 close paren to the x th power
C
y is equal to 2 comma 000 x open paren 1 minus 0 point 2 close paren
D
y is equal to 2 comma 000 times open paren 1 plus 0 point 2 close paren to the x th power

Explanation

A 20% loss each year means the laptop keeps 100% − 20% = 80% of its value each year, or 0.8. After x years, its value is the initial $2,000 multiplied by 0.8 to the xth power: y = 2,000(1 − 0.2)^x. This is choice D.

AI-written and checked against the verified answer.

Previous
Next