Answer:
$13,793
Explanation:
Kate purchased a car for $23,000. It will depreciate by a rate of 12% a year. What is the value of the car in 4 years. *
The formula for Depreciation rate =
y = a(1 - r) ^t
Where
y = Value of the car after t years
a = Initial value of the car = $23,000
t= time in years = 4 years
r = Depreciation rate = 12% = 0.12)
y = $23000 (1 - 0.12)⁴
y = $13792.99328
Approximately = $13,793: