Answer:
$5630
Explanation:
You want the value of a $20,500 car after 3 years if it declines in value by 35% each year.
Exponential function
The exponential function describing the value can be written as ...
value = (initial value) × (1 + growth rate)^t
where the growth rate is the change per year, and t is in years.
Application
Here, the initial value is 20,500, and the growth rate is -35% per year. The function is ...
value = 20500×(1 -0.35)^t
After 3 years, the value is ...
value = 20500(0.65³) ≈ 5630
The resale value after 3 years is $5630.
<95141404393>