9
QuizMultiple Choice

Exponential Depreciation — Quiz

Question 9 • Advanced Financial Algebra

A technology device purchased for $1,500 depreciates at 18% annually. Which equation shows the value of the device after x years?

Answer
A
y=1,500−0.18⁢x
B
y=1,500⁢(1−0.18)x
C
y=18⁢x⁢(1−0.15)
D
y=0.18⁢(1−1,500)x

Explanation

Each year, the device retains 1 − 0.18 = 0.82 of its value. After x years, its value is therefore y = 1,500(1 − 0.18)^x, which is choice D.

AI-written and checked against the verified answer.

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