You buy a new car for $22,500. The value of the car decreases by 25% per year.
Write an exponential equation that models the value of the car over time. Use t to represent time in your model.
V =
Estimate the value of the car after 3 years. Remember to write your answer rounded to the nearest cent. (2 decimal places...how money is always written
The exponential equation that models the value of the car over time is:
V = 22500(0.75)^t
To estimate the value of the car after 3 years, we substitute t = 3 into the equation:
V = 22500(0.75)^3
V = 22500(0.421875)
V = 9484.37
Therefore, the estimated value of the car after 3 years is $9,484.37.