Manny bought a brand new car for $29,750. The car depreciates in value by 12% each year. Find the value of the car after 6 years

Question

2 years ago

5

. Round your final answer to the nearest hundredth.

1 answer:

Arte-miy333 [17] · Answer 1 · 2022-10-17T08:05:31+03:00

Answer: $13,846.02

Step-by-step explanation:

The car cost $29,750 when it was first bought.

It will then depreciate at a rate of 12% per year. This means that the value of the car reduces by 12% per year.

To find the value of the car in the 6th year, you can use the compound interest formula:

= Value of car * ( 1 - rate) ^ no. of years

= 29,750 * ( 1 - 12%)⁶

= ‭13,816.021581824‬

= $13,846.02