Question

A new truck that sells for $30,000 depreciates 10% each year. What is the value of the truck after 5 years? y=30000(0.90)ˣ

Answer 1

Using the depreciation formula y = 30000(0.90)^x, the value of the truck after 5 years is calculated to be approximately $17,714.70.

Step-by-step explanation:

The value of the truck after 5 years can be calculated using the given formula for depreciation: y = 30000(0.90)^x, where y is the value of the truck after x years. In this case, x is 5. Plugging 5 into the equation:

y = 30000(0.90)^5

First calculate (0.90)^5:

0.90^5 = 0.90 x 0.90 x 0.90 x 0.90 x 0.90 = 0.59049

Now multiply this result by the initial value of the truck:

y = 30000 x 0.59049 = $17714.70

Last, round this to the nearest cent, if necessary. So, the value of the truck after 5 years is approximately $17,714.70.