Problema Solution
An automobile is depreciating at 13% per year, every year. A $52,000 car depreciating at this rate can be modeled by the equation V(t) = 52,000(0.87)t. What is an equivalent equation for this vehicle at a daily depreciation and what is it worth (rounded to the nearest thousand dollar) 5 years after purchase?
Answer provided by our tutors
5 years after purchase the worth of the car is:
V(5) = 52,000(0.87)^5
V(5) = $25,917.89
V(5) =$26,000 to the nearest thousand dollars
The equivalent equation for this vehicle at a daily depreciation is:
V(t) = 52,000(100 - 0.13/365)^t, where t is the number of days
V(t) = 52,000(0.99964)^t