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24 votes
24 votes
In the year 2007, a person bought a new car for $14000. For each consecutive year after that, the value of the car depreciated by 9%. How much would the car be worth in the year 2011, to the nearest hundred dollars

User Curvin
by
2.4k points

1 Answer

8 votes
8 votes

We will use the dedepriciation formula;


A\text{ = P}(1-(r)/(100))^T

where A = value of the car after 5 years

P = current value of the car

r = depretiation rate

t = time in years

From the question,

P = $14 000

r = 9

Count the years from 2007 to 2011 starting from 2008 to get the number of years

t =4

Substitute the values into the formula


A=\text{ 14000(1-}(9)/(100))^4
A=14000(1-0.09)^4
=14000(0.91)^4
=9600.49

Therefore the car will worth $9600 to the nearest hundred dollars

User T McKeown
by
3.2k points
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