Question

The general equation for depreciation is given by y = A(1 - ), where y = current value,

A = original cost, r = rate of depreciation, and t = time, in years.
The original value of a car is $24,000. It depreciates 15% annually. What is its value in 4 years?

Answer 1

next part is 6%

Explanation:

after that its the 0.004 0.0025

then 1.6

then 40

Answer 2

$12,528.15

Explanation:

Using the given equation y = A(1 – r)^t you can calculate the car current value :

y = 24000 * (1 - 0.15)⁴ = 24000 * 0.85⁴

y = $12,528.15