25Exponential decay, 15% off
A car worth 24,000 dollars loses 15% of its value each year. To the nearest dollar, what is it worth after 3 years?
After 3 years the car is worth about $14,739. Losing 15% a year means it keeps 85% each year, so multiply 24,000 by 0.85 three times: 24000 × 0.85³ = 24000 × 0.614125 ≈ 14,739.