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45 votes
On average, a car will depreciate by about 21% of its value each year. If anew car costs $20,000, which equation can be used to find theapproximate number of years, n, the car takes to reach a value of $7,790?

On average, a car will depreciate by about 21% of its value each year. If anew car-example-1
User Drescherjm
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1 Answer

25 votes
25 votes

The formula for the final value of an object after n years with decrease in cost at rate of r% per year is,


FV=IV(1-(r)/(100))^n

Determine the relation between initial value and final value of car.


\begin{gathered} 7,790=20,000(1-(21)/(100))^n \\ 7,790=20,000(0.79)^n \end{gathered}

Last option is correct.

User KerrM
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