Question

A new car is purchased for 24600 dollars. The value of the car depreciates at 5.5% per year. To the nearest year, how long will it be until the value of the car is 11300 dollars?

Answer 1

14

Explanation:

Answer 2

The number of years until the value of the car is 11300 dollars is 9 years.

Explanation:

This can be calculated using the following formula:

Value of the Car = Purchase cost - (Annual depreciation expenses * N) ........ (1)

Where;

N = Number of years until the value of the car is 11300 dollars

Purchase cost = $24,600

Annual depreciation rate = 5.5%

Annual depreciation expenses = $24,600 * 5.5% = $1,353

Value of the car = $11,300

Substituting the value into equation (1) and solve for N, we have:

$11,300 = $24,000 - ($1,353 * N)

$1,353 * N = $24,000 - $11,300

$1,353 * N = $12,700

N = $12,700 / $1,353

N = 9.38654841093865

Rounding to the nearest year as required by the question, we have:

N = 9

Therefore, the number of years until the value of the car is 11300 dollars is 9 years.