Wirtz Math Finance Chapter 5 Lesson 6

Term Definition
dollar value (p252) Value of money that something is worth, depreciates, or appreciates.
historical data (p252) The prices from the past that a car was worth.
historical depreciation (p252) The devaluation of a car using historical data.
exponential decay (p252) Rather than the value decreasing by the same dollar amount each year, it decreases by the same percentage each year.
exponential depreciation (p252) The model of exponential decay in the context of auto devaluation.