Manny bought a brand new car in 2012 for $28,750. If the car depreciates by 12% each year, write an exponential function to model the situation, then find the value of the car in 2018.

The exponential formula for this situtation will be given by:

f (x) = ae^ (-bx)

where:

a=initial price

b=rate

x=time in years

hence the formula will be:

f (x) = 28750e^ (-0.12x)

thus the value of the car in 2018 will be:

x=2018-2012=6 years

thus

f (6) = 28750e^ (-0.12*6)

f (6) = $13,994.13