Question

11, A witches broom bought for $17, 850 depreciates in

value every year at a rate of 7%. How much will the
broom be worth in 7 years? Note: It is a very high end
turbo powered broom!
Model: ?
answer: ?
​

Answer 1

`V = 17850[1-(7)/(100) ]^(7)`

$10470.36

Explanation:

A witches broom bought for $17850, depreciates in value every year at a rate of 7%.

So, the value of the broom decreases every year by 7% of its previous year's value.

Therefore, after 7 years the value of the broom will become
`V = 17850[1-(7)/(100) ]^(7)` ........ (1)

Hence, this equation (1) is the model equation for the value of the broom.

Solving equation (1), we get the value V = $10740.36. (Answer)