Posted by Crystal on .
The value of a car after it is purchased depreciates according to the formula v(n)=28000(0.875)^n where v(n) is the car's value in the nth year since it was purchased. How much value does it lose in its fifth year?
The answer is $2052 but I don't see how; please explain how to get all the answers and all your steps! I have a test tomorrow
just figure its worth after 5 years, and subtract from what it was worth after 4 years. That's how much it lost in the 5th year.
v(5) = 28000(.875^5)
v(4) = 28000(.875^4)
v(4)-v(5) = 28000(.875^4 - .875^5) = 2051.64
Ohh! Oh my goodness, thank you! I was subtracting it from the initial value (28000) this whole time and couldn't figure out what I was doing wrong. Thank you!!