Answer: $4,184.14
Explanation:
If a car depreciates, it mean the the car is losing it's marketable worth and sometimes at a constant rate. The worth of the car after some years does not remain the same.
The formula for this depreciation when at a constant rate is denoted as:
D = P × [1 - r/100]^n
Where:
D=the Depreciated value of the car after n period which is what is being determined.
P = initial value of the car before depreciation is considered and in this case, P = $12,000
r = constant Rate Of depreciation and in this case = 10%
n = period being considered, which in this case, n = 10years.
Hence,
D = 12,000 × [1 - 10/100]^10
D = $4,184.14