Question

A new car is purchased for 24600 dollars. The value of the car depreciates at 5.5% per year. To the nearest year, how long will it be until the value of the car is 11300 dollars?

Answer 1

It will take approximately 10 years for the value of the car to reach $11,300.

Step-by-step explanation:

To find out how long it will take for the value of the car to reach $11,300, we need to determine the number of years it will take for the car's value to depreciate from $24,600 to $11,300.

First, we can calculate the annual depreciation amount by multiplying the initial value of the car ($24,600) by the depreciation rate (5.5% or 0.055). This gives us $24,600 * 0.055 = $1,353.

Next, we can divide the difference between the initial value and the desired value ($24,600 - $11,300 = $13,300) by the annual depreciation amount ($13,300 / $1,353 ≈ 9.81).

Therefore, it will take approximately 10 years for the value of the car to reach $11,300.