Answer to Question #302868 in Algebra for jose

Question

A new car is purchased for 19900 dollars. The value of the car depreciates at 7.5% per year. What will the value of the car be, to the nearest cent, after 8 years?

Answer 1

Let P be the purchasing price =19900

Let X be the depreciated price

The rate r = 7.5%

Number of years n =8 years

X = P(1-r )ⁿ

= 19900 (1- 0.075)⁸

= 19900 (0.925)⁸

=19900 (0.53596183)

=10665.64043

The depreciated price of the car is approximately 10665.64 dollars.