Question

Sam bought a used car for $8,000. He boasted that he got a great deal since the value of the car two years ago

Answer 1

Answer:

$V(t) = 15,000*(0.75)^t$

Step-by-step explanation:

The initial value is $15,000, and if it depreciates 25% per year, that means that for each year the value will be 0.75 of the value of the previous year. The next year, the value will be 0.75 of the previous, which will be o.75x0.75 of the initial value, or (0.75)².

So, for t years:

$V(t) = 15,000*(0.75)^t$