Question

A new car is purchased for 22300 dollars. The value of the car depreciates at 10.25% per year. What will the value of the car be, to the nearest cent, after 6 years?

Answer 1

Answer : The value of car will be, $11654.98

Step-by-step explanation:

Given,

Principle = $22300

Time = 6 years

Rate of depreciation = 10.25 %

Formula used :

$A=P(1-\frac{R}{100})^t$

where,

A = amount

P = principle

R = rate  of depreciation

T = time

Now put all the given values in the above formula, we get:

$A=P(1-\frac{R}{100})^t$

$A=\ 22300(1-\frac{10.25}{100})^{6}$

$A=\ 11654.98$

Therefore, the value of car will be, $11654.98