Question

A new car costs ₱450.000.00. This value subsides by 10% each year. 

Answer 1

1. Write an exponential model that represents this situation after t years.

$$f(t)=P(1-r)^t$$

$$f(t)=450000(1-0.1)^t$$

$$f(t)=450000(0.9)^t$$

2. How much will the car be worth after 5 years?

$$f(5)=450000(0.9)^5=265720.50$$

The car will be worth ₱265.720.50 after 5 years.

3.

$$\def\arraystretch{1.5} \begin{array}{c:c} t & Cost,f(t) \\ \hline 1 & 405000.00 \\ \hdashline 2 & 364500.00 \\ \hdashline 3 & 328050.00 \\ \hdashline 4 & 295245.00 \\ \end{array}$$