Terrence buys a new car for 20,000 dollars The value of the car depreciates by 15 percent each year. If f of x represents the value of the car after x years, which function represents the car’s value?

A 15% depreciation means the car loses 15% of its value each year, so it retains 100% − 15% = 85%, or 0.85, each year. Starting at $20,000, its value after x years is f(x) = 20,000(0.85)^x. Therefore, choice D, 20,000 times 0.85 to the x power, is correct.

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