Question

Lyle purchased a motorcycle for $13,430. It depreciates about 4.1% each year. What is the value of the motorcycle after seven years? $13,112.07 $9,575.59 $10,018.58 $17,792.26

Answer 1

`\$10,018.58`

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=\$13,430\\r=4.1\%=0.041\\x=7\ years`

substitute the values

`V=\$13,430(1-0.041)^(7)=\$10,018.58`