Question

Help me with this question please!! fast!

Answer 1

Part a) The equation that represent the depreciation is
`y=18,000(0.88)^(x)`

Part b) The value of the car in 8 years is
`\$6,473.42`

Explanation:

Part a)

we know that

The formula to calculate the depreciated value is equal to

`y=P(1-r)^(x)`

where

y 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=\$18,000\\r=12\%=0.12`

substitute in the formula

`y=18,000(1-0.12)^(x)`

`y=18,000(0.88)^(x)` ------> equation that represent the depreciation

Part b) Find the value of the car in 8 years

Substitute the value of
`x=8\ years` in the equation and solve for y

`y=18,000(0.88)^(8)=\$6,473.42`