Question

A family purchases a car for $11,000 which depreciates about 16% annually. How much is the car worth after 4 years

Answer 1

Answer:

$ 5476.58 ( approx )

Step-by-step explanation:

Given,

The initial value of the car, P = $ 11,000,

Rate of changing, r = - 16% = -0.16,

Time, t = 4 years,

Hence, the value of the car would be,

$A=P(1-r)^t=11000(1-0.16)^4$

$=11000(0.84)^4$

$=\ 5476.58496$

$\approx \ 5476.58$

Answer 2

11,000 x 16%= $1,750 x 4= $7,040

11,000 - 7,040 = $3,960 is worth after 4 years