Question

A new car is purchased for 22300 dollars. The value of the car depreciates at 10.25% per year. What will the value of the car be, to the nearest cent, after 6 years?

Answer 1

Answer : The value of car will be, $11654.98

Explanation:

Given,

Principle = $22300

Time = 6 years

Rate of depreciation = 10.25 %

Formula used :

`A=P(1-(R)/(100))^t`

where,

A = amount

P = principle

R = rate of depreciation

T = time

Now put all the given values in the above formula, we get:

`A=P(1-(R)/(100))^t`

`A=\$ 22300(1-(10.25)/(100))^(6)`

`A=\$ 11654.98`

Therefore, the value of car will be, $11654.98