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igomit [66]
3 years ago
14

The value of a car depreciates every year at a constant rate. Gary bought a car for $25,000 in the year 2013. If the value of th

e car is expected to depreciate 15% annually, what can Gary expect for the value of his car in the year 2017?
Mathematics
2 answers:
Virty [35]3 years ago
5 0
In 2017 the car would be worth $10,000 after deprecating by 15% annually
hope this helps 
coldgirl [10]3 years ago
3 0

Answer:

He can expect $ 13,050.16 ( approx )

Step-by-step explanation:

Given,

The original cost of the car, P = $ 25,000

Annual rate of decreasing, r = 15 %,

Time, t = 4 years ( From 2013 to 2017 ),

Thus, the new cost of the car after 4 years,

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

=25000(1-\frac{15}{100})^4

=25000(1-0.15)^4

=25000(0.85)^4

=13,050.1562\approx \$ 13,050.16

Hence, the he can expect $ 13050.16 value of his car in the year 2017.

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