Question

A new car is purchased for 16400 dollars. The value of the car depreciates at 8.25% per year. What will the value of the car be, to the nearest cent, after 10 years?

Answer 1

16400*0.0825= 1353

1353*10= 13530

16400-13530= $2870

Answer 2

Answer:

$6932.73.

Step-by-step explanation:

Principal = $16400

Rate of decrease = 8.25%

Now we are supposed to find What will the value of the car be, to the nearest cent, after 10 years?

Formula : $A=P(1-\frac{r}{100})^t$

where A is the amount

r is the rate of decreasing in % =8.25%

t is the time =10

P is the principal =$16400

Substituting the values:

$A=16400(1-\frac{8.25}{100})^{10}$

$A=6932.734$

Hence the value of the car after 10 years will be $6932.73.