Question

Amber just bought a new car for $25,000. Online sources predict the value will depreciate by 18% each year.a) Write an equation for V , the predicted value of the car, t years after it was purchased.b) Use your equation to predict the value of the car after 5 years, to the nearest dollar.

Answer 1

a. V = 2500(0.82)^t

b. $9269

Step-by-step explanation:

The value of the car decreases by 18% per year.

This means next year the value of the car will be 100% - 18% = 82% of the previous year.

If the inital value of the car is $25,000 then the value of the car next year will be

`25000*((82)/(100))`

The folllwowing year, the price will further decrease to 82% of value the previous year