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denis23 [38]
3 years ago
11

Kate purchased a car for $23,000. It will depreciate by a rate of 12% a year. What is the value of the car in 4 years. *

Mathematics
1 answer:
Ivan3 years ago
3 0

Answer:

$13,793

Step-by-step explanation:

Kate purchased a car for $23,000. It will depreciate by a rate of 12% a year. What is the value of the car in 4 years. *

The formula for Depreciation rate =

y = a(1 - r) ^t

Where

y = Value of the car after t years

a = Initial value of the car = $23,000

t= time in years = 4 years

r = Depreciation rate = 12% = 0.12)

y = $23000 (1 - 0.12)⁴

y = $13792.99328

Approximately = $13,793:

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