Question

Jared bought a Suzuki 1000 for $12,698. If it depreciates at a rate of 11% per year, how much will it be worth in 3 years

Answer 1

Original price = P = $12,698
Depreciation rate = r = 11% = 0.11
Time in years = t = 3
New price = A

The formula used will be:

$A=P(1-r)^{t}$

Using the values, we get:

$A=12698(1-0.11)^{3}=8951.70$

Thus, the worth of Suzuki after 3 years will be $8951.70