Question

7. A Honda Accord depreciates at 15% per year. Six year ago it was

purchased for $21,000. What is it worth now?

Answer 1

$7920.14

Explanation:

21000(0.85)^6

$7920.14

Answer 2

7920.14

Explanation:

The formula is y = a (1-r)^t

21000 (0.85)^6

0.85^6 = 0.37714951562

21000 (0.37714951562) = 7920.14