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 $
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(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$
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