Question

A new car is purchased for $23,700 the value of the car depreciates at 13. 5% per year what will the value the car be to the nearest cent after 10 years

Answer 1

Compound interest

$5557.88

Explanation:

Everything starts at 100% and since it depreciates you subtract 13.5 from 100 =86.5% now we want percentage as a decimal so we divide by 100=0.865 our multiplier

Now you have the original amount that you purchased for times by the multiplier to the power of number of years=10

23700 times 0.865 power of 10

=5557.88