Answer:
<em>C(12)=$570.18</em>
<em>C(20)=$57.08</em>
Step-by-step explanation:
<u>Exponential Decay Function</u>
The exponential function is often used to model natural growing or decaying processes, where the change is proportional to the actual quantity.
An exponential decaying function is expressed as:
Where:
C(t) is the actual value of the function at time t
Co is the initial value of C at t=0
r is the decaying rate, expressed in decimal
The depreciation of goods is often modeled as an exponential function. The new car costs $18,000 and its price depreciates at r=25%= 0.25 every year.
The depreciation model is:
Operating:
At t=12 years, the price will be:
C(12)=$570.18
At t=20 years, the price will be:
C(20)=$57.08