1. Notes Over 8.6 Exponential Decay
C is initial amount
t is the time period
r is the growth rate
You bought a used truck for $15,000. The value of the truck will decrease each year because of depreciation. The truck depreciates at the rate of 8% per year.
1. Use the exponential decay model in Example 1 to estimate the value of your truck in 5 years.

2. Notes Over 8.6 Exponential Decay
C is initial amount
t is the time period
r is the growth rate
You bought a used truck for $15,000. The value of the truck will decrease each year because of depreciation. The truck depreciates at the rate of 8% per year.
2. Use the exponential decay model in Example 1 to estimate the value of your truck in 7 years.

3. Notes Over 8.6 Exponential Decay
C is initial amount
t is the time period
r is the growth rate
You bought a used truck for $15,000. The value of the truck will decrease each year because of depreciation. The truck depreciates at the rate of 8% per year.
3. Rework Example 1 if the truck depreciates at the rate of 10% each year.

4. Notes Over 8.6
4. Use the graph in Example 2 to estimate the value of you truck in 8 years.
18000
15000
12000
9000
6000
3000
Around $7700

5. Notes Over 8.6 x y 5. Graph the exponential decay model in Exercise 3.
18000
15000
12000
9000
6000
3000

6. Notes Over 8.6