Answer:
6.03 years
Step-by-step explanation:
The value of the Range Rover decreases 25% per year, so its value "growth" factor is 1-25% = 0.75. The initial value is 60,000, so its exponential value function can be written ...
r(x) = 60000(0.75^x)
The Honda has a "growth" factor of 18000/20000 = 0.90 and an initial value of 20,000, so its exponential value function can be written ...
h(x) = 20000(0.90^x)
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We want to find x such that h(x) > r(x).
20000(0.90^x) > 60000(0.75^x)
0.90^x > 3(0.75^x) . . . . . . . divide by 20000
(0.90/0.75)^x > 3 . . . . . . . . divide by 0.75^x
x > log(3)/log(1.2) . . . . . . . . take logs, divide by log(1.2)
x > 6.025685
It will take about 6.03 years for the Honda to be worth more.
