Question

The value of a car with an initial purchase price of $18,250 depreciates by

11% per year.

Answer 1

Explanation:

This problem on depreciation of price.

Given data

initial price = $18,250

rate of depreciation = 11%

to solve for the new price we must find 11 percent of the initial price (depreciated value) and subtract from the initial price, we have

depreciation=

`(11)/(100) *18250\\0.11*18250= 2007.5`

Hence the depreciation= $2007.50

the new amount is
`= initial amount - depreciation`

`=18250-2007.50\\= 16242.50`

the new amount is $16242.50