Question

New cars purchased for $20,300 the value of the car depreciate at 8.75% per year what will the value of the car be to the nearest cent after 12 years

Answer 1

The answer is 6173 dollars and 38 cents or 6173.38

Explanation:

Answer 2

Answer: $6765.35 or $6765 and 35 cents .

Explanation:

Given : New cars purchased for $20,300 the value of the car depreciate at 8.75% per year.

i.e. Initial value :
`A_0= \$20,300`

Rate of depreciation : r= 8.75% =0.0875

Time : t= 12 years

Formula :
`A=A_0(1-r)^(t)` , where A is the value of car after t years.

Substitute the corresponding values , we get

`A=\$20300(1-0.0875)^(12)`

`A=\$20300(0.9125)^(12)`

`A=\$20300(0.333268661729)`

`A=\$6765.35383309\approx\$6765.35` [Rounded to the nearest cent]

Hence, the value of the car after 12 years will be $6765.35 .