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At the start of 2014, Mike’s car is worth 12000. the car depreciates by 30 percent every year. how much is his car worth in 2017
Question
At the start of 2014, Mike’s car is worth 12000. the car depreciates by 30 percent every year. how much is his car worth in 2017
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Mathematics
4 years
2021-08-25T10:40:59+00:00
2021-08-25T10:40:59+00:00 1 Answers
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Answer:
$4,116
Step-by-step explanation:
Worth of Mike’s car at the start of 2014 = $12,000
If the car is said to depreciates every year by 30% = 30/100 = 0.3
The worth of the car at the start of 2017 is what we are to determine.
This means that the car depreciated by 30% (0.3) for 3 years since 2014 (2017 – 2014 = 3 yrs)
The worth at the start of 2017 would be calculated as follows:
12,000 × (1 – 0.3)³
= 12,000 × (0.7)³
= 12,000 × 0.343
= 4,116
Worth of the car at the start of 2017 would be $4,116