Answer:
$7,718
Step-by-step explanation:
Given that :
Cost of car in 2007 = $34000
Cost of car in 2014 = $16200
Predicted value of car in 2021
Lets obtain the percentage Depreciation (d) :
Worth (A) of car in 2014 = $16200
Time (t) = 2014 - 2007 = 7 years
Initial cost (I) = price in 2007
A = I(1 - d/100)^7
16200 = 34000( 1 - d/100)^7
16200 = 34000(1 - 0.01d)^7
(16200/34000)^1/7= 1 - 0.01d
0.8995 = 1 - 0.01d
0.01d = 1 - 0.8995
d = 0.1005 /0.01
d = 10.05
Value of car in year 2021:
t = 2021 - 2007 = 14 years
A = I(1 - 10.05/100)^14
A = 34000(1 - 0.1005)^14
A = 34000(0.8995)^14
A = 34000 * 0.2269950
A =7717.83100
Approximate worth = $7718
