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Viktor [21]
3 years ago
8

A new car is purchased for 24600 dollars. The value of the car depreciates at 13.75% per year. What will the value of the car be

, to the nearest cent, after 15 years?
Mathematics
1 answer:
liraira [26]3 years ago
7 0

Answer:

The value will be $1,411.20

Step-by-step explanation:

What we do here is to set up an exponential equation to calculate the value.

Mathematically it will look like this;

V = I(1-r)^n

where V is the future value

I is the initial amount = 24,600

r is rate of decrease = 13.75% = 13.75/100 = 0.1375

n is the number of years = 15 years

substituting these values, we have

V = 24,600(1-0.1375)^15

V = 24600(0.8625)^15

V = 1,411.165582454129

= $1,411.20

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