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A new car is purchased for 21,100 dollars. The value of the car depreciates at a rate of 2% per year. Which equation represents the value of the car after 5 years?

User Yochi
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1 Answer

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the equation that represents the value of the car after 5 years is Value of car after 5 years = 21,100 x 0.98^5 = 19,105.08

How to calculate the equation that represents the value of the car after 5 years

Given:

The cost price of the car, P = $21100,

The depreciation rate = 2%

Calculate the value of the car after 6 years by the following formula,

A = P (1- r / 100)ⁿ

Here A is the value of the car after 6 years.

Substitute the values,

A = 21100 × (1- 2 / 100)^5,

A = $19,105.08

Therefore, the equation that represents the value of the car after 5 years is Value of car after 5 years = 21,100 x 0.98^5 = 19,105.08

User Victor Bogoslavsky
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