4. Vehicle 1 Price: $25, 000 Depreciation: $3000 per year Vehicle 2 Price: $25, 000 Depreciation: 15% per year So you want to buy a car?

5.  Every year, Vehicle 1 depreciates $3000  Every year, Vehicle 2 depreciates 15% Years (n)Vehicle 1Vehicle 2 0$25 000 1$22 000$21 250 2$19 000$18 062.50 3$16 000$15 353.13 Which vehicle is a better deal when it comes to depreciation?

6. Vehicle 2 depreciates less in the long run! Stunning result…

7.  Edgar has $500 to invest and is considering two investment options. Option A: A treasury bond that pays 8% simple interest. The amount, A, after n years is given by the equation A = 500 + 40n. Option B: A savings account that pays 6.5% per year, compounded annually. The amount, A, after n years is given by the equation A = 500(1.065) n. Which is a better investment? Why?

8.  Option A: A = 500 + 40n  Option B: A = 500(1.065) n

9.  Option A ahead at the start  Option B catches up and surpasses A  Also, notice that Option A is linear, but Option B is exponential.

10. LINEAR

11. EXPONENTIAL