3 years ago

A truck was purchased for $25,000 in 2020 and each year its value decreases by 7%. How much will the truck be worth in

Mathematics

1 answer:

spin [16.1K]3 years ago

3 0

Answer:

$3787.5

Step-by-step explanation:

Given data

Cost price= $25,000

Rate of decrease= 7%

Time= 2020-2026= 26 years

Let us apply the formula

A= P(1-r)^t

substitute

A= 25000(1-0.07)^26

A=25000(0.93)^26

A= 25000*0.1515

A= $3787.5

Hence the worth will be $3787.5

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