Question

Doug purchased land for $8,000 in 1995. The year value of the land depreciated by 4% each year thereafter. Use an exponential function to find the approximate value of the land in 2002.

Answer 1

Answer:

Option C. $6,012

Step-by-step explanation:

we know that

The  formula to calculate the depreciated value  is equal to

$V=P(1-r)^{t}$

where  

V is the the depreciated value  

P is the original value  

r is the rate of depreciation  in decimal

t is Number of Time Periods  

in this problem we have  

t = 7 years

P = $8,000

r = 0.04

substitute in the formula above

$V = 8,000(1-0.04)^{7} = 6,012$

Hope this helps :)