Question

Doug bought a new car for $25,000. He estimates his car will depreciate, or lose value, at a rate of 20% per year. The value of his car is modeled by the equation V = P(1 – r)t, where V is the value of the car, P is the price he paid, r is the annual rate of depreciation, and t is the number of years he has owned the car. According to the model, what will be the approximate value of his car after 4 and one-half years?

Answer 1

b

Explanation:

edge 2021

Answer 2

9514 1404 393

Answer:

$9,159

Explanation:

Put the given numbers into the formula and do the arithmetic.

V = $25,000(1 -0.20)^4.5 ≈ $9,159

The value of the car will be about $9,159 after 4 1/2 years.