Question

Doug bought a new car for $25,000. He estimates his car will depreciate, or lose value, at a rate of 20% per year. The value of his car is modeled by the equation V = P(1 – r)t, where V is the value of the car, P is the price he paid, r is the annual rate of depreciation, and t is the number of years he has owned the car. According to the model, what will be the approximate value of his car after 4 1/2 years?
$2,500
$9,159
$22,827
$23,802

Answer 1

Answer:

b on edge Thank me later;)

Answer 2

These are the values you have:
P = 25000 (original car value)
r = 20% or .2 rate of decrease
t = 4 1/2 or 4.5

Plug these into the equation: $V=25000(1-.2)^4^.^5 = 9159$