Question

assume that a car costing 25000 depreciates exponentially and loses 20% of its value during the fifth year of its life. find its book value after the 3rd year of its use

Answer 1

does this mean it loses 20% of its value every year?

Answer 2

yes

Answer 3

then the formula would look like \(25000\times (.8)^t\) for t in years

Answer 4

because if it loses 20% of its value it retains 80%

Answer 5

your job is to compute \(25000\times( .8)^3\) i would use a calculator

Answer 6

if 6000 is invested at 5% interest, find the value (amount) of the account at the end of 5 years if the interest is compounded