Question

CASH APP

A new car is purchased for \$41,000$41,000 and over time its value depreciates by one half every 3 years. What is the value of the car 4 years after it was purchased, to the nearest hundred dollars?

Answer 1

the answer should be around $19,772 and 38¢

Answer 2

The value of the car after 4 years would be : $19770

Using the depreciation rate formula ;

• 
  `A = p(1 - r)^(t)`
• Rate = 0.5/3 = 0.1667
• t = 4 years

Plugging in our values;

`A = 41000(1 - 0.1667)^(4)`

`A = 41000(0.8333)^(4)`

`A = 41000 × 0.4822453704`

A = 19772.060

Hence, the value of the car after 4 years would be : $19770