Question

You purchased a car for $23,000 and can expect the car to depreciate at an average annual rate of 9%. What will the value of your care be 6 years after purchasing it

Answer 1

$13,060.99

Explanation:

We can use the following formula to solve:

`A=P(1-r)^t`

P = principal value

r = rate (decimal)

t = time (years)

First, change 9% into a decimal:

9% ->
`(9)/(100)` -> 0.09

Now, just plug the values into the equation:

`A=23,000(1-0.09)^6`

`A=13,060.99`

The value of the car after 6 years will be $13,060.99