Question

10. The value of Bobby's car depreciates at a rate of 16% per year. If he paid $19,600 for it 4 years ago, what is the value of the car now? Show all supporting work and answer question using a complete sentence. (3 p

Answer 1

The value of Bobby's car now is approximately $11,764

Step-by-step explanation:

To find the value of Bobby's car now, we need to calculate the depreciation over 4 years. Given that the car depreciates at a rate of 16% per year, we can use the formula

New value = Initial value * (1 - depreciation rate)^number of years

Substituting the given values, we have:

1. New value = $19,600 * (1 - 0.16)^4
2. New value = $19,600 * 0.84^4
3. New value ≈ $19,600 * 0.5991
4. New value ≈ $11,764

Therefore, the value of Bobby's car now is approximately $11,764.