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ICE Princess25 [194]
3 years ago
6

A car purchased in 2014 was worth $21,000. It has depreciated at an annual rate of 8.5%. what will its value be in 2021?

Mathematics
1 answer:
liraira [26]3 years ago
6 0

Answer: The value of the car in 2021 will be $11,276.31.

Step-by-step explanation:

If r is the depreciation rate and P is the initiial amount , then the amount after t years is given by:-

A=P(1-\dfrac{r}{100})^t

Given: P=21000, r=8.5%  , t= 2021-2014= 7

Plug all the values in the formula, we get

A= 21000(1-\dfrac{8.5}{100})^7\\\\\Rightarrow\ A=21000(1-0.085)^7\\\\\Rightarrow\ A= 21000(0.915)^7\\\\\Rightarrow\ A= 21000(0.5369670)\approx11276.31

The value of the car in 2021 will be $11,276.31.

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