Question

A new car is purchased for 15300 dollars. The value of the car depreciates at 14.25% per year. What will the value of the car be, to the nearest cent, after 6 years?

Answer 1

Answer: 6082.70

Explanation:

Answer 2

`\$6,082.70`

Explanation:

we know that

The formula to calculate the depreciated value is equal to

`V=P(1-r)^(x)`

where

V is the depreciated value

P is the original value

r is the rate of depreciation in decimal

x is Number of Time Periods

in this problem we have

`P=\$15,300\\r=14.25\%=0.1425\\x=6\ years`

substitute in the formula

`V=15,300(1-0.1425)^(6)`

`V=15,300(0.8575)^(6)`

`V=\$6,082.70`