Doug bought a new car for $25,000. He estimates his car will depreciate, or lose value, at a rate of 20% per year. The value of his car is modeled by the equation V = P(1 – r)t, where V is the value of the car, P is the price he paid, r is the annual rate of depreciation, and t is the number of years he has owned the car. According to the model, what will be the approximate value of his car after 4 1/2 years?
A.$2,500
B.$9,159
C.$22,827
D.$23,802

Question

Doug bought a new car for $25,000. He estimates his car will depreciate, or lose value, at a rate of 20% per year. The value of his car is modeled by the equation V = P(1 – r)t, where V is the value of the car, P is the price he paid, r is the annual rate of depreciation, and t is the number of years he has owned the car. According to the model, what will be the approximate value of his car after 4 1/2 years? 
A.$2,500
B.$9,159
C.$22,827
D.$23,802

anonymous · Answer

$$25000(1-0.2)^{4.5} = 9158.93$$

anonymous · Answer

ok

tkhunny · Answer

Please don't post questions without showing your OWN work.