Question

The value in dollars v(x), of a certain truck after x years is represented by the equation v(x)= 32,500(0.92) raised to the x power. To nearest dollar, how much is the truck worth after 2 years.

Answer 1

$27508

Explanation:

The value of a truck v(x) in dollars after x years is modeled by the equation
`v(x) = 32500(0.92)^(x)`.

Now, this is an exponential decay function, where the price of the truck is depreciating at an exponential rate.

So, after 2 years the value of the truck will become
`v(x) = 32500(0.92)^(2) = 27508` dollars. (Answer)