Answer:
A. V (2) = $ 391,114.50
B. t = 7.2 years (rounding to the next tenth) or approximately 7 years, 2 months and 12 days
Explanation:
Given formula:
V(t) = 420,000 * (0.965)^t
A. What would be worth the car′s worth in 2 years?
V(t) = 420,000 * (0.965)^t
We replace t by 2, as follows:
V(2) = 420,000 * (0.965)²
V(2) = 420,000 * 0.931225
V (2) = $ 391,114.50
B. In how many years will the car be worth $325,000?
V(t) = 420,000 * (0.965)^t
We replace V(t) by 325,000, as follows:
325,000 = 420,000 * (0.965)^t
325,000/420,000 = (0.965)^t
0.77381 = (0.965)^t
t = log 0.965(0.7738)
t = log 0.7738/log 0.965
t = 7.2 years (rounding to the next tenth) or approximately 7 years, 2 months and 12 days
0.2 years = 0.2 * 12 = 2.4 months
0.4 months = 0.4 * 30 = 12 days