Since the value in dollars x years from now is given by:
[tex]12,000(\frac{9}{10})^x^{}[/tex]
And the moment "right now" can be represented as x=0, then replace 0 for x in the expression and evaluate it. Since every number elevated to the 0th power is equal to 1, then:
[tex]12,000(\frac{9}{10})^0=12,000(1)=12,000[/tex]
Therefore, the car is worth $12,000 right now.
To find the value of the car one year ago, notice that the time "one year ago" can be represented with x=-1. Then, replace x=-1 into the formula:
[tex]12,000(\frac{9}{10})^{-1}=12,000(\frac{10}{9})=13,333.33\ldots[/tex]
Therefore, the car was worth approximately $13,333.33 one year ago.
