Question

Sharon purchased a used car for $24,600. The car depreciates exponentially by 8% per

much will the car be worth after 5 years? Round your answer to the nearest penny.

Answer 1

The value of car after 5 years of exponentially depreciation is $16,213.36

Explanation:

The initial amount of the car = i = $24,600

The depreciates rate of interest applied = r = 8%

Let The value of car after n years = A

The number of years = n = 5 years

Now,According to question

The value of car after n years = initial price of car ×
`(1-(\textrm rate)/(100))^(\textrm time)`

Or, The value of car after 5 years = i ×
`(1-(\textrm r)/(100))^(\textrm n)`

Or, $A = $24,600 ×
`(1-(\textrm 8)/(100))^(\textrm 5)`

Or, $A = $24,600 ×
`(0.92)^(5)`

Or, $A = $24,600 × 0.65908

Or, $A = $16,213.36

So, The value of car after 5 years = A = $16,213.36

Hence , The value of car after 5 years of exponentially depreciation is $16,213.36 . Answer