The value V(t) of a $25,000 car after t years that depreciates at 25% per year is given by the formula V(t) = V0(b)t. What is the value of V0 and b, and what is the car's value after 5 years (rounded to the nearest cent)?

Hint: Use the equation b = 1 − r to determine depreciation.

V0 = $25,000, b = 0.25, and the value after 5 years is $18,750.00
V0 = $25,000, b = 0.75, and the value after 5 years is $5,932.62
V0 = $25,000, b = 1.25, and the value after 5 years is $76,293.95
V0 = $25,000, b = 0.75, and the value after 5 years is $5,872.60