Question

1. David bought a used Dodge Challenger for $14,000. The value of the car depreciates 11% per year from the time he bought the car. Find a function that represents the value of David’s car, V(t), after t years.

2. How much will David’s car be worth 6 years after he bought it?

Answer 1

V(t) = 14,000(0.89)^t

Explanation:

Present value of the Dodge Challenger = $14,000

Present percentage value = 100%

Depreciation value = 11%

Number of years = t

Future value = V(t)

V(t) = Present value of the Dodge Challenger(Present percentage value - Depreciation value)^t

= 14,000(100% - 11%)^t

= 14,000(89%)^t

= 14,000(0.89)^t

V(t) = 14,000(0.89)^t