Question

A new car is purchased for 20000 dollars.The value of the cat depreciates at 12.5% per year.What will the value of the car be, to the nearest cent, after 11 years?

Answer 1

$460.38

Explanation:

Use the exponential decay formula, y = C(1 - r)^t

Plug in the original price, depreciation rate, and amount of time:

y = 20000(0.875)^11

y = 460.38

So, the car's value after 11 years will be $460.38