Question

Doug purchased land for $8,000 in 1995. The value of the land depreciated by 4% each year thereafter. Use an exponential function to find the approximate value of the land in 2002
A - $5,760
B - $5,771
C - $6,012
D - $6,262

Answer 1

Answer:

Option C. $\ 6,012$  

Step-by-step explanation:

we know that

The  formula to calculate the depreciated value  is equal to  

$V=P(1-r)^{t}$  

where  

V is the the depreciated value  

P is the original value  

r is the rate of depreciation  in decimal

t is Number of Time Periods  

in this problem we have  

$t=7\ years\\ P=\ 8,000\\ r=0.04$  

substitute in the formula above  

$V=\ 8,000(1-0.04)^{7}=\ 6,012$