Answer:
The function, f(x) to model the value of the van can be expressed as follows;
[tex]f(x) = 32,500 \times \left(0.88\right)^x[/tex]
Step-by-step explanation:
From the question, we have;
The amount at which Amrita bought the new delivery van, PV = $32,500
The annual rate of depreciation of the van, r = -12% per year
The Future Value, f(x), of the van after x years of ownership can be given according to the following formula
[tex]f(x) = PV \cdot \left(1 + \dfrac{r}{100} \right)^x[/tex]
Therefore, the function, f(x) to model the value of the van after 'x' years of ownership can be expressed as follows;
[tex]f(x) = 32,500 \cdot \left(1 - \dfrac{12}{100} \right)^x = 32,500 \cdot \left(0.88\right)^x[/tex]
