you decide to buy a car for 25000. each year your car depreciates in value by 5% from its original value. After 15 years though, your used car will only be worth $500 to a dealership.

Question

you decide to buy a car for 25000. each year your car depreciates in value by 5% from its original value. After 15 years though, your used car will only be worth $500 to a dealership.
Write a piece wise function for C(t), car value over time, for this scenario
Graph the piecewise function
If you pay $6000 a year for your car, when will it be a good to trade in your car?

Henry · Answer

V(t) = Po - Po*r*t V(t) = 25,000 - 25000*0.05*t V(t) = 25000(1-0.05t)