Question

Mitchell purchased a car in 2008 for $25,980. The function y 25,980(0.88y represents the depreciated value of the car after t years since 2008. What is the approximate value of the car in 2012?

Answer 1

`\$15,580.09`

Explanation:

we know that

The exponential decay function that represent the depreciated value of the car is given by

`y=25,980(0.88^t)`

where

y is the depreciated value of the car

t is the number of years since 2008

What is the approximate value of the car in 2012?

Find the value of t

`t=2012-2008=4\ years`

substitute in the equation

`y=25,980(0.88^4)=\$15,580.09`