Answer:
The decay factor is 0.88.
Step-by-step explanation:
The general form of an exponential decay function is
[tex]f(x)=ab^x[/tex]
Where, a is initial value and b is decay factor.
It is given a new truck that sells for $29,000 depreciates (decreases in value) 12% each year.
The initial value is $29,000 and decay factor is
[tex]1-r=1-\frac{12}{100}=1-0.12=0.88[/tex]
The exponential function is
[tex]f(x)=29000(0.88)^x[/tex]
Therefore the decay factor is 0.88.
