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Mashcka [7]
3 years ago
5

A car is purchase at $20000.The value of the car depreciates at 12.5% a year. What will the value of the car be to the nearest c

ent after 11 years
Mathematics
1 answer:
Rudik [331]3 years ago
6 0

Answer: $4603.82

Step-by-step explanation:

Given

The initial cost of a car is P=\$20,000

The rate of depreciation is i=12.5\%

Depreciated value after n years is given by

\Rightarrow P(1-\frac{i}{100})^n\quad \text{where n=no. of years}

Value after 11 years

\Rightarrow 20,000(1-\frac{12.5}{100})^{11}\\\\\Rightarrow 20000(0.875)^{11}=\$4603.82

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