Question

Today a car is valued at $42000. The value is expected to decrease at a rate of 8% each year. Choose the equation that can be used to solve the problem.
A.) y=42000(1+.08)^6
B.) y=42000(1+6)^8
C.) y=42000(1−.08)^6
D.) y=42000(1−.8)^6
And then: What is the value of the car expected to be 6 years from now?
This is the only question I don't understand, someone help please!

Answer 1

I think the correct answer is

C.) y=42000(1−.08)^6

as for what it will cost in six years:

25466.91

not sure if you have to include the decimal or round it.

Answer 2

Answer:

Option (c) is correct.

$y=42000(1-0.08)^6$ equation that can be used to solve the given problem and the value of the car expected to be 6 years from now is $25466.91

Step-by-step explanation:

Given :   Today a car is valued at $42000. The value is expected to decrease at a rate of 8% each year.

We have to choose the equation that can be used to solve the given problem.

We know

Depreciation formula given as,

$A=P(1-\frac{r}{100} )^n$

Where A is the amount value after depreciation.

P is present value

r is depreciate rate.

n is time period.

Given : P = 42000  and r= 8% also given time period is 6.

Substitute , we have,

$y=42000(1-\frac{8}{100} )^6$

Simplify , we have,

$y=42000(1-0.08)^6$

Simplify we get,

$y=25466.91$

Thus, $y=42000(1-0.08)^6$ equation that can be used to solve the given problem and the value of the car expected to be 6 years from now is $25466.91