Question

The general equation for depreciation is given by y = A(1 – r)t, where y = current value, A = original cost, r = rate of depreciation, and t = time, in years. The original value of a car is $24,000. It depreciates 15% annually. What is its value in 4 years?

Answer 1

Answer:

12528.15

Step-by-step explanation:

on edge

Answer 2

$y = A(1 - r)^{t}$
$y = 24000(1 - 0.15)^{4}$ - this means we want the value of the car when it's depreciated 15% in 4 years.

Alternatively, this is saying:
$A_1 = A(1 - 0.15)$
$A_2 = A_1(1 - 0.15)$
$A_3 = A_2(1 - 0.15)$ and so on.

Thus, after 4 years, the car's value becomes $12528.15