Answer:
(2) The motorcycle cost $12,000 when purchased.
Step-by-step explanation:
[tex]V(t)=12000(0.75)^t[/tex]
[tex]V(0)=12000(0.75)^0=12000[/tex]
[tex]V(1)=12000(0.75)^1=9000[/tex]
[tex]V(2)=12000(0.75)^2=6750[/tex]
etc.
⇒ Initial cost = $12,000
⇒ The motorcycle's value is decreasing by 25% each year.
