Question

One model for car depreciation is as follows, where C is the original cost, V is the value of the car after t years, and is the rate

of depreciation

V=C(1-r)^t

of the original cost of the car was $21,000 and the rate of depreciation is 15%, what will be the value of the car after 5 years?

[Round to the nearest dollar.)

A $19,472

B. $3,150

C$9,318

D. $17,850

Answer 1

C $9,318

Explanation:

In order to find the answer you have to use the formula provided to calculate the value of the car after t years:

V=C(1-r)^t

C=$21,000

r=15%

t=5

V=21,000*(1-0.15)^5

V=21,000*0.4437

V=9,318

According to this, the answer is that the value of the car after 5 years is $9,318.