Question

2) Lucy spent $15, 500 to purchase a new car this year. Lucy can expect her car to depreciate at a rate of 7% per year.

How much will Lucy's car be worth in 9 years? Write the equation and give the answer
Equation:
Answer:

Answer 1

Equation: V = C * (1 - r)^t

Answer: $ 8,066.37

Explanation:

Let's recall that depreciation on a car can be determined by the formula:

V = C * (1 - r)^t , where:

V is the value of the car after t years,

C is the original cost

r is the rate of depreciation

t is the number of years of utilization of the car

Therefore, we have:

V = C * (1-r)^t

V = 15,500 * (1 - 0.07)⁹

V = 8,066.37 (rounding to the next cent)