Question

I bought a car for $35,000, but its value is depreciating at a rate of 10% per year. How much will my car be worth after 8 years? Round your answer to two decimal places.

Answer 1

After 8 years, the car will be worth approximately $13,670.85.

Step-by-step explanation:

To find out how much your car will be worth after 8 years, you can use the formula for compound interest: P = P_0(1 - r)^t, where P is the final value of the car, P_0 is the initial value of the car, r is the rate of depreciation (which can be expressed as a decimal), and t is the number of years. In this case, P_0 = $35,000, r = 0.10, and t = 8. Plugging these values into the formula, we get:

P = 35,000(1 - 0.10)^8

Calculating this, we find that the car will be worth approximately $13,670.85 after 8 years.