Question

Determine the approximate value of the vehicle 10 years after purchase

Answer 1

Step 1

Write the expression for the current value of the vehicle in any given year

$\begin{gathered} P_{}=ab^t \\ P_{}\text{ = value at any year} \\ a=Original\text{ purchase price = \ 25000} \\ b=1-\frac{8}{100}=1-0.08=0.92 \\ t=\text{ time= 10years} \end{gathered}$

Step 2

Substitute and get the price of the vehicle after 10 years

$\begin{gathered} P=25000(0.92)^{10} \\ P=10,859.71136\text{ dollars} \end{gathered}$

To the nearest whole number the cost of the vehicle after 10 years = $10,860