Question

A new car is purchased for 17000 dollars. The value of the car depreciates at 13.5% per year. What will the value of the car be after 12 years

Answer 1

Answer:  $2,982.92

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Work Shown:

A = P*(1+r)^t

A = 17000*(1+(-0.135))^12

A = 17000(1-0.135)^12

A = 17000(0.865)^12

A = 17000(0.17546612676) ... which is approximate

A = 2982.92415492

A = 2982.92 .... rounding to the nearest penny

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note: I used these values

• P = 17000 (initial value)
• r = -0.135 which represents a 13.5% decrease
• t = 12