Answer:
$16,748
Step-by-step explanation:
we know that
The equation of a exponential decay function is equal to
[tex]y=a(1-r)^x[/tex]
where
y is the value of the car
x is the number of years
a is the initial value
r is the rate of change
In this problem we have
[tex]a=\$25,000\\r=12.5\%=12.5/100=0.125[/tex]
substitute
[tex]y=25,000(1-0.125)^x[/tex]
[tex]y=25,000(0.875)^x[/tex]
For x=3 years
substitute
[tex]y=25,000(0.875)^3=\$16,748[/tex]
