Question

A vehicle purchased for $29,800 depreciates at a constant rate of 4%. Determine the approximate value of

the vehicle 10 years after purchase. Round to the nearest whole dollar.

Answer 1

$44104

Explanation:

Given data

Cost = $29800

Rate= 4%

Time= 10years

Applying the formula below, we can find the cost after 10 years as

A=P(1+r)^t

A= 29800(1+0.04)^10

A=29800(1.04)^10

A=29800*1.480

A=$44104

Hence the new cost is $44104