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Paraphin [41]
2 years ago
6

(c) (i) A new truck costs $15 000 and loses 23% of its value each year. Calculate the value of the truck after three years. ( c

) ( i ) A new truck costs $ 15 000 and loses 23 % of its value each year . Calculate the value of the truck after three years .​
Mathematics
1 answer:
nalin [4]2 years ago
6 0

Answer:

$6847.955

Explanation:

Use the compound interest formula, but the value decreases over time.

\sf A = P(1 - \dfrac{r}{100} )^t

where 'A' is final amount, r is rate, t is time

Inserting P = $15,000, r = 23, t = 3 years

\sf A = 15000(1- \dfrac{23}{100} )^3

\sf A = 6847.995

Hence the value of truck after three years will be $6847.955.

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