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BigorU [14]
3 years ago
8

Dan buys a car for £2200.

Mathematics
1 answer:
KatRina [158]3 years ago
8 0

Answer:

The worth of the car after 6 years is £2,134.82

Step-by-step explanation:

The amount at which Dan buys the car, PV = £2200

The rate at which the car depreciates, r = -0.5%

The car's worth, 'FV', in 6 years is given as follows;

FV = PV \cdot \left ( 1 + \dfrac{r}{100} \right )^n

Where;

r = The depreciation rate (negative) = -0.5%

FV = The future value of the asset

PV = The present value pf the asset = £2200

n = The number of years (depreciating) = 6

By plugging in the values, we get;

FV = 2200 \times \left ( 1 + \dfrac{-0.5}{100} \right )^6 \approx 2,134.82

The amount the car will be worth which is its future value, FV after 6 years is FV ≈ £2,134.82 (after rounding to the nearest penny (hundredth))

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