Question

Anne bought a car valued at $45,000. The car depreciates 3% each year.

Use the equation below to determine the value of the car will in 3 years.
Round your answer to the nearest whole number. *
A = (1 - r)^x
A = Total Amount
r=rate as decimal
x = amount of time (years)

Answer 1

9514 1404 393

Answer:

$41,070

Explanation:

Fill in the given numbers and do the arithmetic. (Fix the equation first.)

A = P(1 -r)^x

A = $45,000(1 -0.03)^3 ≈ $41,070

The value of the car will be about $41,070 in 3 years.