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devlian [24]
2 years ago
11

The resale value of a bike decreases by 14% per year. A new bike is valued at $350. Approximate the resale value after 4 years t

o the nearest dollar.
Mathematics
1 answer:
Ray Of Light [21]2 years ago
7 0

Answer: $‭191.45

Step-by-step explanation:

This question requires the price of a bike in future so you can use the future value formula to calculate it:

Future value = Amount * (1 + rate)^ no. of periods

= 350 * (1 - 14%)⁴

= 350 * ‭0.54700816‬

= $‭191.45

<em>The rate is subtracted from 1 instead of being added to represent that the value is decreasing not increasing. </em>

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