The value of a car after it is purchased depreciates according to the formula v(n)=28000(0.875)^n where v(n) is the car's value in the nth year since it was purchased. How much value does it lose in its fifth year?

Question

The answer is $2052 but I don't see how; please explain how to get all the answers and all your steps! I have a test tomorrow

Answer 1

just figure its worth after 5 years, and subtract from what it was worth after 4 years. That's how much it lost in the 5th year.

v(5) = 28000(.875^5)
v(4) = 28000(.875^4)

v(4)-v(5) = 28000(.875^4 - .875^5) = 2051.64

Answer 2

Ohh! Oh my goodness, thank you! I was subtracting it from the initial value (28000) this whole time and couldn't figure out what I was doing wrong. Thank you!!

Answer 3

Questions 1 and 2 refer to the example below
The value of a car after is purchased depreciates according to the formula
V (n)= 32000(0.795)n , where V(n) is the car’s value in the nth year since it was purchased