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.
The value of the car after time t can be modeled by the equation:
V(t) = 22,500 * (1 - 0.25)^t
where V(t) represents the value of the car after time t.
Estimate the value of the car after 3 years. Remember to write your answer rounded to the nearest cent.
To estimate the value of the car after 3 years, we can plug in t = 3 into the equation:
V(3) = 22,500 * (1 - 0.25)^3
V(3) = 22,500 * (0.75)^3
V(3) = 22,500 * 0.421875
V(3) = 9,472.66
Rounded to the nearest cent, the value of the car after 3 years is approximately $9,472.67.