Question

Sydney purchases a new car for $27,500. The value of the car decreases at rate of 15% each year. In approximately will the $1,254?

Answer 1

Answer: 5 years

Explanation:

Answer 2

Time taken n = 19 years (Approx)

Explanation:

Given:

Amount of car P = $27,500

Decrease rate r = 15% = 0.15

Final amount A = $1,254

Find:

Time taken n

Computation:

A = P[1-r]ⁿ

1,254 = 27,500[1-0.15]ⁿ

0.0456 = [0.85]ⁿ

Time taken n = 19 years (Approx)