Question

You buy a car for $8000 that depreciates at a rate of 11% a year. How much is the

Answer 1

Answer: $4,467.2

Step-by-step explanation:

The formula for this is A = P (1 - r) ^t

Where p is the Principal, r is the rate and t= time

Given from the question, p = $8000

rate= 11% = 11/100 = 0.11

Time = 5 years

Slot the values into the formula:

A= 8000 (1 - 0.11) ^5

= 8000 (0.89)^5

8000 × 0.5584

=$4,467.2

After 5 years, the worth of the car would have depreciated to $4,467.2

I hope this helps.

Answer 2

Answer: $3600

Step-by-step explanation:

Principal (P) = $8000

Rate (R) = 11%

Time (T) = 5years

Let depreciation be X

X = P x R x T / 100

X = 8000 x 11 x 5 / 100

X = $4400

Therefore, Depreciation after 5years is given as ; P - X

= $8000 - $4400

= $3600