Question

Bruce bought his car for $24,380. It is expected to depreciate an average of 14% each year during the first 6 years.


What will the approximate value of his car be in 6 years? Explain.
$9863
$9926
$10,314
$10,527

Answer 1

Use the depreciation formula.

$\sf A=P(1-\dfrac{R}{100})^n$

Where 'P' is the principal amount, 'R' is the rate, and 'n' is the time in years. Plug in what we know:

$\sf A=24380(1-\dfrac{14}{100})^6$

Divide:

$\sf A=24380(1-0.14)^6$

Subtract:

$\sf A=24380(0.86)^6$

Simplify the exponent:

$\sf A\approx 24380(0.40456723513)$

Multiply:

$\sf A\approx \boxed{\sf\ 9863}$

Answer 2

Answer:

$9863

Step-by-step explanation: