squidhardy: The initail value of a car is $25,000. After one year, the value of the car is $21,250. Write an exponential function to model the expected value of the car. Estimate the value of the car after 5 years.
1-21250/25000
So the car is depreciating by 0.15 or 15% per year.
1-0.15=0.85
F
n = $25000 * 0.85
n F
5 = $25000 * 0.85
5 25000*0.85^5
So after 5 years the car will be worth $11092.63