Question

A new car is purchased for 20000 dollars. The value of the car depreciates at 12.5%

per year. What will the value of the car be, to the nearest cent, after 11 years?​

Answer 1

$4,603.82

Explanation:

A new car is purchased for 20,000 dollars,

P = $20,000

The value of the car depreciates at 12.5%,

r = 1 - 0.125 = 0.875

I = value of the car after

t = 11 years

Use formula

`I=P\cdot r^t`

Hence,

`I=\$20,000\cdot 0.875^(11)\\ \\I=\$4,603.82`