Pedro bought a bicycle for $1,000 After two years, the bicycle's value depreciated to $810 , and after three years, it was worth $729 If the bicycle depreciates exponentially each year, what equation represents the depreciation of the bicycle?

The value falls from $810 after two years to $729 after three years, so the yearly multiplier is 729 ÷ 810 = 0.90. That means the bicycle loses 10% of its value each year. Starting from $1,000, its value is y = 1,000(1 − 0.10)^x, which is choice A.

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