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tiny-mole [99]
2 years ago
5

The value of a new truck decreases exponentially at a rate of 4.8% per year. If the purchase price of the new cars $42,000, how

much is the car work by the time it is paid off by the time it is paid off 5 years later?
Mathematics
1 answer:
Usimov [2.4K]2 years ago
7 0

The worth of the car after it is paid off 5 years later given the rate of exponential depreciation is $32,842.34.

<h3>What is the worth of the car?</h3>

When the car declines in value, it means that the car is depreciating. The formula that can be used to determine the value of the car with the depreciationn rate is:

FV = P (1 - r)^n

  • FV = Future value
  • P = Present value
  • R = rate of decline
  • N = number of years

$42,000 x (1 - 0.048)^5 = $32,842.34

To learn more about future value, please check: brainly.com/question/18760477

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