jakaylaispretty jakaylaispretty

04-03-2018
Mathematics

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The formula for finding the present value of an item that depreciates yearly is v = c - crt. In this formula, v is the present value, c is the original cost, r is the rate of depreciation per year, and t is the number of years that have passed. After 7 years, what is the value of a car originally costing $27,000 that depreciated at a rate of 0.1 per year

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MsEHolt MsEHolt

14-03-2018

The value would be $8100.

Using the formula and substituting our known information, we have:

v = 27000 - 27000(0.1)(7)
v = 27000 - 18900
v = 8100

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