CPM Homework Help : CCG Problem 7-99

The principal’s new car cost $\$35{,}000$ but in three years it will only be worth $\$21{,}494$ . What is the average annual percent of decrease for the three year period?

Hint:

Use the exponential function: $y=a·b^x$

More Help:

$a=\text{initial value}$ , $b=\frac{\text{the multiplier}}{\text{growth}}$ , $x=\text{the number of years}$

Step:

Solve for $b$ .

More Help:

After you find “ $b$ " convert it to a percent and subtract from $100\%$ to find the percent decrease.

Answer:

Percent decrease is $15\%$ .