Question

Hello I seem to be having some difficulties please help

Answer 1

I believe the answer is 5904

Answer 2

$5904

Explanation:

• The purchase value of the car = $21,500

,

• The rate of depreciation = 35%.

To find the resale value of the car after a certain number of years, we use the depreciation formula below:

`A(t)=A_o(1-r)^t`

• The initial value, Ao = 21,500

,

• The rate, r = 35% =0.35

,

• The time, t (in years) = 3

Substitute these values into the formula:

`\begin{gathered} A(3)=21500(1-0.35)^3 \\ =21500(0.65)^3 \\ =5904.44 \\ \approx\$5904 \end{gathered}`

The resale value of the car after 3 years is $5904 (correct to the nearest dollar).