math help please check description

Question

The function f(t) = 15,000(0.86)t models the value, in dollars, of a used car t years after it is purchased. To the nearest hundred dollars, how much will the car be worth after 5 years?

A. $7100

B. $7000

C. $7056

D. $7200

Answer 1

This is somewhat like a compounding of interest problem.  Except, for the diminishing car value, it's a compounding of degradation.  So:

 

15,000 * (0.86)⁵ = (C) $7.056