Answer:
Part A: What would be worth the car's worth in 2 years?
V(2) = $ 391,114.50
Part B. In how many years will the car be worth $325,000?
t = 7.2 years (rounding to the next tenth) or approximately 7 years, 2 months and 12 days
Step-by-step explanation:
Part A: What would be worth the car's worth in 2 years?
If V(t) = 420,000(0.965) ^t, therefore:
V(2) = 420,000(0.965)²
V(2) = 420,000 * 0.931225
V(2) = $ 391,114.50
Part B. In how many years will the car be worth $325,000?
If V(t) = 420,000(0.965) ^t, therefore:
325,000 = 420,000(0.965) ^t
325,000/420,000 = (0.965) ^t
0.7738 = 0.965^t
t = log 0.965(0.7738)
t = log 0.7738/log 0.965
t = 7.2 years (rounding to the next tenth) or approximately 7 years, 2 months and 12 days
0.2 years = 0.2 * 12 = 2.4 months
