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Determine the approximate value of the vehicle 10 years after purchase

Determine the approximate value of the vehicle 10 years after purchase-example-1
User JDie
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1 Answer

10 votes
10 votes

Step 1

Write the expression for the current value of the vehicle in any given year


\begin{gathered} P_{}=ab^t \\ P_{}\text{ = value at any year} \\ a=Original\text{ purchase price = \$25000} \\ b=1-(8)/(100)=1-0.08=0.92 \\ t=\text{ time= 10years} \end{gathered}

Step 2

Substitute and get the price of the vehicle after 10 years


\begin{gathered} P=25000(0.92)^(10) \\ P=10,859.71136\text{ dollars} \end{gathered}

To the nearest whole number the cost of the vehicle after 10 years = $10,860

User Letitia
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