Question

Mariah purchased a car for $8,599. If the rate of depreciation is 2.5%, what will the value of the car be after 4 years? Round your answer to the nearest hundredth.

Answer 1

Answer:

$\ 7,770.81$  

Step-by-step explanation:

we know that

The  formula to calculate the depreciated value  is equal to  

$V=P(1-r)^{x}$  

where  

V is the depreciated value  

P is the original value  

r is the rate of depreciation  in decimal  

x  is Number of Time Periods  

in this problem we have  

$P=\ 8,599\\r=2.5\%=0.025\\x=4\ years$

substitute

$V=\ 8,599(1-0.025)^{4}=\ 7,770.81$