Question 76·Easy·Nonlinear Functions
The value of a new car is $25,000. Each year, the value of the car is estimated to decrease by of its value at the beginning of that year.
Which equation models the estimated value , in dollars, of the car after years, where ?
For percent growth or decay questions on the SAT, immediately rewrite the situation in the standard exponential form , where is the initial amount and is the rate as a decimal (negative for decrease, positive for increase). Here, convert 12% to 0.12, subtract from 1 to get the decay multiplier , and plug into . Then scan the choices for the one with the correct starting value out front and the correct multiplier (less than 1 for decay) raised to the power .
Hints
Think about what remains, not just what is lost
If the car loses 12% of its value each year, what percent of its value does it still have after each year?
Convert the percent that remains to a decimal
Once you know what percent of the value remains each year, write that percent as a decimal (for example, 88% becomes 0.88). This decimal is your yearly multiplier.
Decide how to model repeated yearly change
When the same percent change happens year after year, should you add/subtract the percent repeatedly, or should you multiply by a common factor raised to the power ?
Check the base and exponent positions
In an exponential model for this situation, which quantity should be the starting value (multiplied in front), and which number should be raised to the power ?
Desmos Guide
Enter each option as a function
In Desmos, type four separate functions, one for each option, such as:
- Use the same variable as in the problem.
Check the starting value and direction of change
Look at each graph near . The correct model should give a value of 25000 when (the car’s value when new) and should decrease as increases, since the car loses value each year. Eliminate any equations whose graphs do not start at 25000 or that increase over time.
Verify the 12% decrease in one year
Create a table in Desmos for each function to see values at and . For the correct model, the value at should be exactly 12% less than the value at . Compare the two table entries for each function and keep the one that shows this 12% drop.
Step-by-step Explanation
Interpret the percent decrease
The car loses 12% of its value each year, so it keeps the remaining 88% of its value each year. That means each year you multiply the current value by 0.88 (since 88% written as a decimal is ).
Write expressions for the first few years
Start with the initial value of dollars.
- After 1 year: .
- After 2 years: .
- After 3 years: . You can see that each year adds another factor of .
Recognize the exponential pattern
When the same percent change happens every year, the situation is modeled by an exponential function of the form . Here, the initial value is 25000 and the yearly multiplier is 0.88, so the model must use those numbers in that form.
Write the general function and match the choice
Putting it all together, after years the value is . Comparing with the options, this corresponds to choice B.