1. The value of the vehicle depreciates or decreases over time. This can be modeled with the equation V=C(1-r)^t where C is the initial purchase price of the vehicle, r is the depreciation rate and t is the time in years.

• Use the list price of your vehicle (without taxes or fees) and a depreciation rate of 25% per year to calculate how much this vehicle will be worth when you are done paying off the loan. Show your work.

Vehicle Comparison Table Vehicle List price Miles per Miles per Make/Model gallon (city) gallon (highway) Choice 1 Toyota Tundra CrewMax $54,795 13 17 TRD Pro Choice 2 Ford Explorer Platinum $55,725 18 24 Choice 3 Toyota Tacoma Access $34,235 19 24 Cab TRD Sport