Tim purchased a new Jeep Wrangler for $30,365. As soon as a new car is driven off the dealer’s lot, the value depreciates. The current depreciation rate for automobiles is 18.75% per year. Tim hopes to sell his jeep in 5 years. What will be the value of his jeep?
Write an exponential equation to model this situation.

2. Graph the exponential equation using an appropriate window in the graphing calculator.

3. Identify the range of this function.

4. Will the value of the Jeep ever reach zero? Explain your reasoning.

5. What is a reasonable domain for this function?

6. Determine the average rate of change of the value of the Jeep over a 5 year period. Use mathematics to explain how you determined your answer.

7. Compare the average rate of change of the value of the Jeep over a five year period with the average rate of rate of change over the first year. Use mathematics to support your comparison.