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Mariah purchased a car for $8,599. If the rate of depreciation is 2.5%, what will the value of the car be after 4 years? Round your answer to the nearest hundredth.

1 Answer

7 votes

Answer:


\$7,770.81

Explanation:

we know that

The formula to calculate the depreciated value is equal to


V=P(1-r)^(x)

where

V is the depreciated value

P is the original value

r is the rate of depreciation in decimal

x is Number of Time Periods

in this problem we have


P=\$8,599\\r=2.5\%=0.025\\x=4\ years

substitute


V=\$8,599(1-0.025)^(4)=\$7,770.81

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