A family purchases a car for $11,000 which depreciates about 16% annually. How much is the car worth after 4 years

Question

asked Jan 15, 2019 203k views

1 Answer

Andrey Portnoy · Answer 1 · 2019-01-18T22:58:34+0000

Answer:

$ 5476.58 ( approx )

Explanation:

Given,

The initial value of the car, P = $ 11,000,

Rate of changing, r = - 16% = -0.16,

Time, t = 4 years,

Hence, the value of the car would be,

A=P(1-r)^t=11000(1-0.16)^4

=11000(0.84)^4

$=\$ 5476.58496$

$\approx \$ 5476.58$