Question

A new car is purchased for 17000 dollars. The value of the car depreciates at 12.25%

per year. What will the value of the car be, to the nearest cent, after 14 years?

Answer 1

`\qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{current amount}\\ P=\textit{initial amount}\dotfill &17000\\ r=rate\to 12.25\%\to (12.25)/(100)\dotfill &0.1225\\ t=years\dotfill &14\\ \end{cases} \\\\\\ A=17000(1 - 0.1225)^(14)\implies A=17000(0.8775)^(14)\implies A\approx 2728.40`

Answer 2

$2728.40

Step-by-step explanation:The formula to calculate depreciation in this case is Value = 17,000(1-.1225)14

Solving for Value after 14 years is $2728.40