trying to figure out how to answer this formula by plugging in the variables

Algebra
Tutor: None Selected Time limit: 1 Day

As a car ages its value decreases. The value of a particular car with an original purchase  price of $27,400 is modeled by the following function, where c is the value at time t, in years.

c(t) = 27,400 (1-0.24)^t

 a. What is the value of the car when it is 2 years old? The value of the car is after 2 years is $

b. what is the total depreciation amount after 5 years? After 5 years, the total depreciation amount it $ 

Jun 21st, 2015

Thank you for the opportunity to help you with your question! the solution is as such:

The price can be calculated using the following formula:

c(t) = 27,400 (1-0.24)^t

so (i) for t=2,

c(2) = 27,400 (1-0.24)^2

therefore, c(2)= 15826.24$.

The price after two years is 15826.24$.

now, (ii) fot t= 5

c(5) = 27,400 (1-0.24)^5

so, c(5) = 6947.33$

therefore, the depreciation is (27400 - 6947.33 ) = 20452.67$


Please let me know if you need any clarification. I'm always happy to answer your questions.awaiting a positive feedback. thank you.
Jun 21st, 2015

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