A new car is purchased for 20000 dollars.The value of the cat depreciates at 12.5% per year.What will the value of the car be, to the nearest cent, after 11 years?
Question
Question
A new car is purchased for 20000 dollars.The value of the cat depreciates at 12.5% per year.What will the value of the car be, to the nearest cent, after 11 years?
Answer:
$460.38
Step-by-step explanation:
Use the exponential decay formula, y = C(1 – r)^t
Plug in the original price, depreciation rate, and amount of time:
y = 20000(0.875)^11
y = 460.38
So, the car’s value after 11 years will be $460.38