Question

Mary bought a car priced at $23,500. If the value of the car decreases every year by 9%, approximately what will be the value of the car after 10 years?

Answer 1

$4626.548

Explanation:

Given that :

Cost of car = $23,500

Value of car decreases by 9% every year

Value of car after 10 years =?

Using the formula :

A = p(1 + r/n)^nt

A = final amount

P = cost of car = principal

r = Depreciation = - 15%

t = number of years

A = 23500(1 + - 0.15/1)^10

A = 23500(0.85)^10

A = $4626.548