The 32,500 is the original cost of the truck and the (0.92) You take v(x)=32,500(0.92) and raise that to the 2nd power, to represent the 2nd year and you will get an answer of $27,300. Each year the truck is losing $2,600 in value, after two years the truck has lost $5,200 in value equalling = $27,300
