Question

if vehicles purchase for $30,000. if the vehicle depreciates (loses value) at a rate of 23% per year, determine the value of the vehicle after 4 years. round your answer to the nearest cent. $________​

Answer 1

$10530

Explanation:

Given data

Purchase price= $30,000

Rate= 23%

Time= 4 years

The expression for the depreciation is

A=P(1-r)^t

Substitute

A= 30000(1-0.23)^4

A=30000(0.77)^4

A=30000*0.351

A=10530

Hence the value of the car will be $10530