Answer:
To the nearest hundred dollars, the car will be worth $17,900 by 2005
Step-by-step explanation:
Firstly, we need to write the depreciation equation
We have this as:
V = I(1 - r)^t
V is the present value which is what we want to calculate
I is the initial value, the amount the cad was bought which is $22,000
r is the rate of change which is 5% = 5/100 = 0.05
t is the time difference which is 2005-2001 = 4
Substituting all these into the depreciation equation, we have it that
V = 22,000(1 -0.05)^4
V = $17,919.1375
To the nearest hundred dollars, that would be;
$17,900
I do believe it is 12 as well considering the fact that it's negative three and not positive. If it was a positive three then maybe it would be 18.
