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GaryK [48]
3 years ago
15

Doug purchased land for $8,000 in 1995. The value of the land depreciated by 4% each year thereafter. Use an exponential functio

n to find the approximate value of the land in 2002
A - $5,760
B - $5,771
C - $6,012
D - $6,262
Mathematics
1 answer:
artcher [175]3 years ago
6 0

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  

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