The price p, in dollars, of a specific ca that is x year old is modeled by the function p (x) = 22,255 (0.91) ^x

(a) how much should a 2-year old car cost?

(b) how much should a 7 year old car cost?

(c) explain the meaning of the base 0.91 in this problem.

Step-by-step explanation:

Answer:

Step-by-step explanation:

The price p, in dollars, of a specific car that is x year old is modeled by the function p (x) = 22,255 (0.91) ^x

a) to determine the cost of a 2 year old car, we will substitute 2 for x in the given function. Therefore

p (2) = 22,255 (0.91) ^2

p (2) = 22,255 * 0.8281 = $18673.655

Approximately $18674

b) to determine the cost of a 7 year old car, we will substitute 7 for x in the given function. Therefore

p (7) = 22,255 (0.91) ^7

p (2) = 22,255 * 0.51676101936 = 11500.51648579693

Approximately $11501

c) 0.91 indicates exponential decay rate. It is a fixed percentage by which the value of the car decreases every year. It is determined by (1 - rate of decay)