SOLUTION: 1. The value of a new car decreases exponentially. Suppose you buy a new car for $32,000, and the value of the car decreases at a rate of 20% per year. Find the value of the car af

Question 935652: 1. The value of a new car decreases exponentially. Suppose you buy a new car for $32,000, and the value of the car decreases at a rate of 20% per year. Find the value of the car after 5 years. Round the answer to the nearest thousand dollars.
So i wrote down that P is 32000, R is 20 and T is 5 in the A=Pe^rt equation. A=32000(1-20*5) I dont know how to do the rest.

Answer by TimothyLamb(4379) (Show Source): You can put this solution on YOUR website!
depreciation formula:
v = c(1-r)^t
where:
v = future value
c = current value
r = depreciation rate per period
t = number of periods
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v = 32000*(1-0.20)^5
v = 10485.76
---
answer:
the car will be worth: $10485.76 after five years ...
rounding to the nearest thousand dollars, $10000
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