Question

new car is purchased for 17300 dollars. The value of the car depreciates at 9.25% per year. What will the value of the car be, to the nearest cent, after 15 years?

Answer 1

Answer:

$4034

Step-by-step explanation:

The new value is given by

$A=P(1-i)^{n}$ where A is the final value, P is initial value, i is depreciation rate in decimal, n is duration in years. Substituting 17300 for P amd 15 for n then

$A=17300(1-0.0925)^{15}=4034.0902388653093042610864428203245692614\approx 4034$