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Oksi-84 [34.3K]
3 years ago
6

The original value of a car is $24,000. It depreciates 15% annually. What is its value in 4 years? $

Mathematics
1 answer:
ValentinkaMS [17]3 years ago
8 0

Answer:

Future Value = $ 12528.15

Step-by-step explanation:

The depreciation is applied to the car annually. The value of the car after depreciation in "n" no. of years can be given by the following formula:

Future\ Value = (Present\ Value)(1-depreciation\ rate)^n\\

where,

Future Value = ?

Present Value = $ 24000

Depreciation Rate = 15% = 0.15

n = no. of years = 4

Therefore,

Future\ Value = (\$ 24000)(1-0.15)^4

<u>Future Value = $ 12528.15</u>

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