Exercises: Interpret Parameters in Context

Work through each section in order. Show your work where indicated.

Grade 9·21 problems·~30 min·Common Core Math - HS Functions·group·hsf-le-b-5

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Fluency Practice

A car's value is modeled by $V(t) = 25000 \cdot (0.88)^t$ , where $t$ is years after purchase.

Which interpretation of the base is correct?

The car loses $0.88 in value each year.

The car loses 88% of its value each year.

Each year, the car retains 88% of its value from the previous year (loses 12% per year).

The decay factor is negative (the car is depreciating).