Question

Today a car is valued at $42000. The value is expected to decrease at a rate of 8% each year. Choose the equation that can be used to solve the problem.

A.) y=42000(1+.08)^6
B.) y=42000(1+6)^8
C.) y=42000(1−.08)^6
D.) y=42000(1−.8)^6
And then: What is the value of the car expected to be 6 years from now?
This is the only question I don't understand, someone help please!

Answer 1

i think the correct answer is

C.) y=42000(1−.08)^6

as for what it will cost in six years:

25466.91

not sure if you have to include the decimal or round it.

Answer 2

Option (c) is correct.

`y=42000(1-0.08)^6` equation that can be used to solve the given problem and the value of the car expected to be 6 years from now is $25466.91

Explanation:

Given : Today a car is valued at $42000. The value is expected to decrease at a rate of 8% each year.

We have to choose the equation that can be used to solve the given problem.

We know

Depreciation formula given as,

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

Where A is the amount value after depreciation.

P is present value

r is depreciate rate.

n is time period.

Given : P = 42000 and r= 8% also given time period is 6.

Substitute , we have,

`y=42000(1-(8)/(100) )^6`

Simplify , we have,

`y=42000(1-0.08)^6`

Simplify we get,

`y=25466.91`

Thus,
`y=42000(1-0.08)^6` equation that can be used to solve the given problem and the value of the car expected to be 6 years from now is $25466.91