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

$Amount$ $=P(1-r/100)$ⁿ

$A=19900(1-(7.5/100))$⁸

$A=19900(1-0.075)$⁸

$A$ $=$$19900(0.925)$⁸

$A=19900\times0.5359618307$

$A=10,665.64 dollars$