Explanation
From the statement, we know that the value of the car (in dollars) as a function of time (in years) is given by:
[tex]v(t)=43,256\cdot(0.87)^t.[/tex]
(1) The initial value of the car is given by the value of the function when t = 0:
[tex]v(0)=43,256\cdot(0.87)^0=43,256\cdot1=43,256.[/tex]
(2) The value of the car, after t = 5 years, is given by:
[tex]v(5)=43,256\cdot(0.87)^5\cong21,559.70\cong21,560.[/tex]Answer
• Initial cost = ,43,256
,
• Value after 5 years = ,21,560
