Question

A travel trailer is bought at the price of $35,000. The price decreases at the rate of .25 every year (t). The exponential expression is 35,000(.75)^t. Find the price of the trailer at 5 years.

Answer 1

$ 8300 (Approximately)

Explanation:

Given:

Initial price of the trailer is,
`P_0=\$35000`

Rate of decrease per year is,
`r=0.25`

The time in years is,
`t=5`

The exponential expression for the decrease in price after 't' years is given as:

`P=P_0(1-r)^t`

Plug in all the given values and solve for 'P'. This gives,

`P=35000(1-0.25)^5\\P=35000(0.75)^5\\P=35000(0.2373)\\P=\$8305.5\approx \$8300`

Rounding it to the nearest whole number, the price of the travel trailer after 5 years is $ 8,300.