Question

A truck is bought at the price of $60,000. The value decreases at the rate of .25 every year (t). The exponential expression 60,000(0.75)t describes this situation. Find the value of the truck at 2 years.

Answer 1

$33750

Explanation:

Replace t with 2. The correct formula is

`60000(.75)^t` (t is an exponent)

With t = 2, the value of the truck is

`60000(.75)^2=33750`