Question

Jeff is purchasing a car for $28,175 that will depreciate in value 8.5% each year.

Write a function to model the value of p of the car after t years.
If he decides to sell the car after 6 years, what will be the value of his car? Express your answer as a decimal rounded to the nearest hundredth.

Answer 1

The function to model the value of p of the car after t years can be expressed as:

p(t) = 28,175 * (1 - 0.085)^t

where 0.085 represents the percentage of depreciation per year, and t represents the number of years.

To find the value of the car after 6 years, we substitute t = 6 into the function:

p(6) = 28,175 * (1 - 0.085)^6

p(6) = 28,175 * 0.5386

p(6) ≈ 15,199.35

Therefore, the value of Jeff's car after 6 years will be approximately $15,199.35.