Question

A new car is purchased for 15500 dollars. The value of the car depreciates at 7.5% per year. What will the value of the car be, to the nearest cent, after 6 years?

Answer 1

Answer:

$\ 9,709.17$  

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  

$P=\ 15,500\\r=7.5\%=0.075\\x=6\ years$

substitute

$V=\ 15,500(1-0.075)^{6}=\ 9,709.17$