Question

Lyle purchased a motorcycle for $13,430. It depreciates about 4.1% each year. What is the value of the motorcycle after seven years? $13,112.07 $9,575.59 $10,018.58 $17,792.26

Answer 1

Answer:

$\ 10,018.58$  

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  

$P=\ 13,430\\r=4.1\%=0.041\\x=7\ years$

substitute the values

$V=\ 13,430(1-0.041)^{7}=\ 10,018.58$