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Sandra is very excited to buy her first new car for which she negotiates a price of $27,850. The value of the car depreciates at 12% each year. After how many years (rounded to the nearest tenth) will Sandra's car be worth half its original price?

User Elingela
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Final answer:

The question asks for the time it will take for a car to depreciate to half its value at a rate of 12% per year. To solve this, the exponential decay formula is used to find the number of years, which is then rounded to the nearest tenth.

Step-by-step explanation:

The question involves exponential decay (depreciation) to determine when Sandra's car, which depreciates at 12% per year, will be worth half its original price of $27,850. We can approach this by using the formula A = P(1 - r)^t, where A is the amount after depreciation, P is the original amount, r is the rate of depreciation, and t is the time in years. In this case, we're looking for t when A is half of P, that is, when A = $27,850 / 2, at a rate of r = 0.12 (12%).

To find t, the equation becomes $13,925 = $27,850(1 - 0.12)^t. Solving for t, t = ln($13,925/$27,850) / ln(1 - 0.12). Calculating this gives us the actual number of years after which the car's value will be halved, and rounding to the nearest tenth to comply with the question's requirements.

User Gyscos
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