Answer to Question #291744 in Algebra for jcnewbhckrevc

Question

A new car is purchased for 20700 dollars. The value of the car depreciates at 13.75% per year. What will the value of the car be, to the nearest cent, after 12 years?

Answer 1

By the use of the formula;

p₂ = p₁ * (1 - d/100)ⁿ

where;

p₂ - The final price of a product after a period of depreciation.

p₁ - The current price of a product. which is = 20700

n - duration. which is = 12 years.

d - Depreciation. which is = 13.75%.

Therefore, from, p₂ = p₁ * (1 - d/100)ⁿ, we get;

p₂ = 20700 * (1 - 13.75/100)¹²

p₂ = 3508.161599 dollars, to the nearest cent, we have;

p₂ = 3508.16 dollars