Question

24500 dollars and depreciates 14.75% per year what will the value be to the nearest cent after 14 years

Answer 1

Answer: y ≈ 2623.54

Explanation:

y=ab^x

a=starting value=0.1475

Exponential decay

b= 1 - r = 1 - 0.1475 = 0.8525

Write exponential function

y= 24500(0.8525)^x

Plug in time for x (14)

And you'll get y ≈ 2623.54

Answer 2

Depreciation is the decrease in value of a given asset within a given period of time.
Using the formula, A=P(1-r/100)^n, where A is the new value after depreciation, P is the original value, r is the depreciation rate and n is the time taken.
Therefore,
A = 24500(0.8525)^14
= 2623.54 dollars
≈ 2623.50 dollars
Thus the value after 14 years will be 2623.50 dollars