Question

Devon purchased a new car valued at $16,000 that depreciated continuously at a rate of 35%. Its current value is $2,000. The equation 2000=16000(1−r)^t represents the situation, where t is the age of the car in years and r is the rate of depreciation. Solve for the age of Devon's car? Use a calculator and round your answer to the nearest whole number.

Answer 1

Answer:

5 years

Step-by-step explanation:

Answer 2

Given:
initial value = 16,000
depreciation rate = 35%
current value = 2,000

equation:
2,000 = 16,000 (1-r)^t
2,000 = 16,000 (1-0.35)^t
2,000 = 16,000 (0.65)^t
2,000/16,000 = 0.65^t
0.125 = 0.65^t
log(0.125) = log(0.65^t)
log(0.125) = log(0.65) * t
log(0.125) / log(0.65) = t
4.82 = t

or 5 years

16,000 * 0.65 = 10,400
10,500 * 0.65 =   6,760
  6,760 * 0.65 =   4,394
  4,394 * 0.65 =   2,856.10
  2,856.1 * 0.65 = 1,856.47