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Maslowich
3 years ago
11

Dan buys a car for £2700.

Mathematics
1 answer:
BartSMP [9]3 years ago
7 0

Answer:

The car will be worth £2516.22 in 5 years

Step-by-step explanation:

The rule of depreciating is  

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

  • <em>A</em> is the new value
  • <em>P</em> is the original value
  • <em>r</em> is the rate in decimal
  • <em>t</em> is the time in years

∵ Dan buys a car for £2700

∴ <em>P</em> = 2700

∵ It depreciates at a rate of 1.4% per year

∴ <em>r</em> = 1.4% = 1.4/100 = 0.014

∵ We need to find how much it will be worth in 5 years

∴ <em>t</em> = 5

→ Substitute all of these values in the rule above to find A

∵ A=2700(1-0.014)^{5}

→ Use your calculator to find the answer

∴ <em>A</em> = 2516.22

∴ The car will be worth £2516.22 in 5 years

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