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The value V(t) of a $18,000 car after t years that depreciates at 20% per year is given by the formula V(t) = V0(b)t. What is the value of V0 and b, and what is the car's value after 5 years (rounded to the nearest cent)? Hint: Use the equation b = 1 − r to determine depreciation.

User Tim Klein
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V(5)=18,000×(1−0.20)^(5)=5,898
User Cathy Ha
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