Question

A car that costs $52,400 depreciates at the rate of 9.8% every year. how much in total, to the nearest cent, will the car depreciate after 10 years?

Answer 1

Use depreciation formula:
F=P(1-i)^n
where
F=future value
P=present value=52400
i=annual depreciation rate=9.8%=0.098
n=number of years.=10
Future value,
F=52400(0.902)^10
=52400*.0.3565
=$18680.85  (depreciated value after 10 years)