Question

A new car is purchased for 15300 dollars. The value of the car depreciates at 14.25% per year. What will the value of the car be, to the nearest cent, after 6 years?

Answer 1

Answer:

$\ 6,082.70$  

Step-by-step explanation:

we know that

The  formula to calculate the depreciated value  is equal to  

$V=P(1-r)^{x}$  

where  

V is the depreciated value  

P is the original value  

r is the rate of depreciation  in decimal  

x  is Number of Time Periods  

in this problem we have  

$P=\ 15,300\\r=14.25\%=0.1425\\x=6\ years$

substitute in the formula

$V=15,300(1-0.1425)^{6}$  

$V=15,300(0.8575)^{6}$  

$V=\ 6,082.70$