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Travka [436]
2 years ago
11

You buy a car for $25,000. It depreciates at the rate of 23% per year.

Mathematics
1 answer:
Juliette [100K]2 years ago
7 0

The worth of the car in 10 years is $1,831.67 using an exponential equation approach.

What is an exponential equation?

An exponential equation is the one with exponents such X^3(the 3 is the exponent)

The exponential equation required here is the one where the future value would be lower than current value because the car reduces in value year-in-year-out.

FV=PV*(1-r)^N

FV=future worth of the car

PV=today's value=$25,000

r=depreciation rate=-23%

N=number of years=10

The fact that r is negative means the car is depreciating not appreciating.

FV=$25,000*(1-23%)^10

FV=$1,831.67

Find further explanation on exponential equation below in the link:

brainly.com/question/11832081

#SPJ1

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