Transportation

Back: Credit Cards Photo courtesy of [|fdmount] Since you are commuting to work everyday, you are considering buying a new car. However, you're not sure if you should buy a new car or just keep the one you have. You have heard that cars depreciate in value a lot, and you don't want to waste your hard earned cash. Let's investigate to see if cars really do depreciate and if so, by how much.

Use your worksheet to record all information.

1. Shop online for a used automobile that you would like to purchase. The vehicle must be at least 3 years old.

2. Research how much the same car was originally sold for.

3. Figure out the rate of depreciation.

4. Using that rate, determine what the car will be worth in 5 years.

Congratulations, you've made it through our exercise. Hopefully this provided a little insight into how exponential functions are used in real life.

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