A new car begins to depreciate in value as soon as you drive it off the lot. Some models depreciate linearly, and others depreciate exponentially. Suppose you buy a new car for $20,000, and 1 year later its value has decreased to $17,000.

1. If the value decreased linearly, what was its annual rate of decrease?
   $ per year
2. If the value decreased exponentially, what was its annual decay factor? What was its annual percent depreciation? %
3. Calculate the value of your car when it is 5 years old under each assumption, linear or exponential depreciation.
   Linear: $
   Exponential: $