Question

A new car is purchased for 19000 dollars. The value of the car depreciates at 11.25% per year. What will the value of the car be, to the nearest cent, after 14 years.

Answer 1

$3573. 64

Explanation:

Convert 11.25% to the decimal fraction 0.1125. Then subtract this result from 1.0000: 0.8875.

After 14 years, the formerly $19000 car will have the value

$19000(0.8875)^14 = $3573. 64