Question

4) Suppose you want to buy a car that costs $11,800. The expected depreciation of the car is 35% per year.

* What percentage is the car worth each year it depreciates from the previous year?
b. Find the depreciated value of the car after 6 years.
Show work please!!!!

Answer 1

$889.94 after six years

Explanation:

The equation is I=P(1-r)^t so after six years it would be worth $889.94. Every year the value depreciates by $4,130.