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A new car is purchased for 17000 dollars. The value of the car depreciates at 13.5% per year. What will the value of the car be, to the nearest cent, after 12 years?

User KindaTechy
by
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1 Answer

3 votes

The value of car after 12 years is $ 2982.92

Solution:

Given that,

A new car is purchased for 17000 dollars

The value of the car depreciates at 13.5% per year

To find: Value of car after 12 years

The decreasing function is given as:


y = a(1-r)^t

Where,

y is the future value

a is the initial value

r is the decreasing rate in decimal

t is the number of years

From given,


a = 17000\\\\t = 12\\\\r = 13.5 \% = (13.5)/(100) = 0.135

Substituting the values we get,


y = 17000(1-0.135)^(12)\\\\y = 17000(0.865)^(12)\\\\y = 17000 * 0.1754661\\\\y = 2982.9241 \approx 2982.92

Thus value of car after 12 years is $ 2982.92

User Gabriel Perdue
by
6.6k points
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