Question

The value of a car depreciates every year at a constant rate. Gary bought a car for $25,000 in the year 2013. If the value of the car is expected to depreciate 15% annually, what can Gary expect for the value of his car in the year 2017?

Answer 1

in 2017 the car would be worth $10,000 after deprecating by 15% annually
hope this helps

Answer 2

He can expect $ 13,050.16 ( approx )

Explanation:

Given,

The original cost of the car, P = $ 25,000

Annual rate of decreasing, r = 15 %,

Time, t = 4 years ( From 2013 to 2017 ),

Thus, the new cost of the car after 4 years,

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

`=25000(1-(15)/(100))^4`

`=25000(1-0.15)^4`

`=25000(0.85)^4`

`=13,050.1562\approx \$ 13,050.16`

Hence, the he can expect $ 13050.16 value of his car in the year 2017.