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qaws [65]
3 years ago
15

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

, to the nearest cent, after 11 years?.
Mathematics
1 answer:
Georgia [21]3 years ago
8 0

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

  • Cost of Car at the beginning, p = $20,000
  • Rate of depreciation, r = 12.5%
  • Time, t = 11 years

<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}\\\\&#10;= \$20,000\times 0.23\\\\&#10;= \$4,603.822 \approx \$4,603.81

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

Learn more about Depreciation:

brainly.com/question/3023490

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