Answer:
$ 8300 (Approximately)
Step-by-step explanation:
Given:
Initial price of the trailer is, [tex]P_0=\$35000[/tex]
Rate of decrease per year is, [tex]r=0.25[/tex]
The time in years is, [tex]t=5[/tex]
The exponential expression for the decrease in price after 't' years is given as:
[tex]P=P_0(1-r)^t[/tex]
Plug in all the given values and solve for 'P'. This gives,
[tex]P=35000(1-0.25)^5\\P=35000(0.75)^5\\P=35000(0.2373)\\P=\$8305.5\approx \$8300[/tex]
Rounding it to the nearest whole number, the price of the travel trailer after 5 years is $ 8,300.
