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krok68 [10]
3 years ago
5

A car with an initial cost of $33,000 is decreasing in value at a rate of 7% each year. Write the exponential decay function to

determine when the value of the car will be $15,000 to the nearest year
Mathematics
1 answer:
Brut [27]3 years ago
7 0

Answer:

n= 11.65 years

Step-by-step explanation:

Giving the following information:

Present Value (PV)= $33,000

Future Value (FV)= $15,000

Decrease rate (d)= 7%

<u>To calculate the number of years it will take to reach $15,000; we need to use the following formula:</u>

<u></u>

n= ln(FV/PV) / ln(1+d)  

n= ln(15,000/33,000) / ln(1.07)

n= 11.65 years

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