A new car is purchased for 20000 dollars. The value of the car depreciates at 12. 5% per year. What will the value of the car be

Question

2 years ago

15

, to the nearest cent, after 11 years?.

1 answer:

Georgia [21] · Answer 1 · 2022-10-06T07:19:50+03:00

To solve the problem we need to know about depreciation.

<h2>Formula of Depreciation</h2>

The formula of depreciation is given as,

$A = P(1-r)^t$

where,

A is the value of an object after t years of time,

P is the value of the object at the beginning, and

r is the rate of depreciation.

The value of the car after 11 years is $4,603.81.

<h2>Explanation</h2>

Given to us

<h3>Value of the car after 11 years</h3>

Substituting the values in the formula of depreciation,

$A = P(1-r)^t$

Value of the car after 11 years = $P(1-r)^n$

$= \$20,000(1-0.125)^{11}\\\\
= \$20,000\times 0.23\\\\
= \$4,603.822 \approx \$4,603.81$

Hence, the value of the car after 11 years is $4,603.81.

Learn more about Depreciation: