Suppose it is estimated that the value of a car depreciates 30% per year for the first 10 years. The equation $A = P _ { 0 } ( 0.7 ) ^ { t }$ yields the value ( A ) of a car after t years if the original price is P o . Find the value (to the nearest dollar) of $16,000.00 car after 2 years.
A) $5,227
B) $7,840
C) $18,032
D) $3,920

Question

Quizplus · Accepted Answer

To find the value of the car after 2 years, we can substitute P o = $16,000 and t = 2 into the equation A = P o (0.7)^t. Thus, we get A = $16,000(0.7)^2 = $7,840. Therefore, the best choice is B.

Suppose It Is Estimated That the Value of a Car A=P0(0.7)tA = P _ { 0 } ( 0.7 ) ^ { t }A=P0​(0.7)t

Suppose It Is Estimated That the Value of a Car $A = P _ { 0 } ( 0.7 ) ^ { t }$