Question

The value of a car with an initial purchase price of $18,250 depreciates by 11% per year.

Answer 1

Step-by-step explanation:

This problem on depreciation of price.

Given data

initial price = $18,250

rate of depreciation = 11%

to solve for the new price we must find 11 percent of the initial price (depreciated value) and subtract from the initial price, we have

depreciation=

$\frac{11}{100} *18250\\0.11*18250= 2007.5$

Hence the depreciation= $2007.50

the new amount is $= initial amount - depreciation$

$=18250-2007.50\\= 16242.50$

the new amount is $16242.50