Depreciation A new car that costs $25,000 depreciates to 80% of its value in 3 years.
(a) Assume the depreciation is linear. What is the linear function that models the value of this car years after purchase?
(b) Assume the value of the car is given by an exponential function y = Aekt, where A is the initial price of the car. Find the value of the constant kand the exponential function.
(c) Using the linear model found in part (a), find the value of the car 5 years after purchase. Do the same using the exponential model found in part (b).
(d) Graph both models using a graphing utility. Which model do you think is more realistic, and why?
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