Question

The value of a car is $18,000 and is depreciating at a rate of 12% per year. Find how much the car will be worth in 10 years?

Answer 1

• $5013

Explanation:

• Initial value of a car - $18000
• Depreciation rate - 12% per year
• Time - 10 years

Depreciation factor is (100 - 12)/100= 0.88 per year

Final value of the car:

• $18000*(0.88)¹⁰ = $5013