Answer:Part a) The equation that represent the depreciation is [tex]y=18,000(0.88)^{x}[/tex] Part b) The value of the car in 8 years is [tex]\$6,473.42[/tex] Step-by-step explanation:Part a) we know that
The formula to calculate the depreciated value is equal to
[tex]y=P(1-r)^{x}[/tex] where
y is the depreciated value
P is the original value
r is the rate of depreciation in decimal x is Number of Time Periods
in this problem we have
[tex]P=\$18,000\\r=12\%=0.12[/tex]
substitute in the formula[tex]y=18,000(1-0.12)^{x}[/tex] [tex]y=18,000(0.88)^{x}[/tex] ------> equation that represent the depreciationPart b) Find the value of the car in 8 yearsSubstitute the value of [tex]x=8\ years[/tex] in the equation and solve for y[tex]y=18,000(0.88)^{8}=\$6,473.42[/tex]