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A car decreases in value by 20% each year. After 2 years, it is worth $12,800. Which equation could be used...

2. A car decreases in value by 20% each year. After 2 years, it is worth $12,800. Which equation could be used to find the initial value α?
a. 12800 = α(1.20)^2
b. 12800 = α(0.80)^2
c. 12800 = 0.80(α)^2
d. α = 12800(0.80)^2

Answer

b. 12800 = α(0.80)^2

This equation correctly represents the situation where the car's value decreases by 20% each year, meaning it retains 80% of its value each year. Therefore, after 2 years, the value is α(0.80)^2 = 12800.

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