Question

An electric scooter depreciates at a rate of 15%. Tammi bought an electric scooter for $250. How much should it be worth 6 years later? Please show work.

a) $63.75
b) $78.20
c) $85.00
d) $127.42

Answer 1

The value of Tammi's electric scooter after 6 years, considering a depreciation rate of 15% per year, is calculated to be approximately $63.75.

Step-by-step explanation:

To find the value of the electric scooter after 6 years with a depreciation rate of 15% annually, we can use the formula for exponential decay:

Given:

Initial Value (Initial Value) = $250

Depreciation Rate= 15% or 0.15 (as a decimal)

Time = 6 years

Substitute these values into the formula:

Final Value=250×(1−0.15) 6

Final Value=250×(0.85) 6

Final Value=250×0.262

Final Value=65.5

Therefore, after 6 years, the electric scooter should be worth approximately $65.5. None of the options provided exactly matches this value, but the closest value is:

a) $63.75

However, the calculated value is closer to $65.5. It's important to note that depreciation calculations often involve rounding, and the exact answer might differ slightly due to rounding differences.