Question

Solve each simple interest word problem 11) A new car volued at $28.000, depreciates of 9% per year. What is the value of the car one year after purchase?​

Answer 1

`\qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{current amount}\\ P=\textit{initial amount}\dotfill &28000\\ r=rate\to 9\%\to (9)/(100)\dotfill &0.09\\ t=\textit{elapsed time}\dotfill &1 \end{cases} \\\\\\ A=28000(1-0.09)^1\implies A=28000(0.91)\implies A=25480`

Answer 2

$25,480

Explanation:

In one year, the car depreciates by 9% of its original value:

0.09 × $28,000 = $2520 . . . . amount of depreciation

The value at the end of one year is ...

$28,000 -2,520 = $25,480

The value one year after purchase is $25,480.