Question

The dollar value v(t) of a certain car model that is t years old is given by the following exponential function.

V(t)=24,500(0.95^t)

Find the initial value of the car and the value after 13 years.
Round answers to the nearest dollar as necessary.

Answer 1

Initial value means t equals 0. Therefore
24,500*(0.95^0) =
24,500*1 = 24,500
Hence, the initial value is £24,500

The value after 13 years means t equals 13. Therefore
24,500*(0.95^13) =
12,576.88
Hence, the value after 13 years is about £12,577