Question

11, A witches broom bought for $17, 850 depreciates in
value every year at a rate of 7%. How much will the
broom be worth in 7 years? Note: It is a very high end
turbo powered broom!
Model: ?
answer: ?
​

Answer 1

Answer:

$V = 17850[1-\frac{7}{100} ]^{7}$

$10470.36

Step-by-step explanation:

A witches broom bought for $17850, depreciates in value every year at a rate of 7%.

So, the value of the broom decreases every year by 7% of its previous year's value.

Therefore, after 7 years  the value of the broom will become $V = 17850[1-\frac{7}{100} ]^{7}$ ........ (1)

Hence, this equation (1) is the model equation for the value of the broom.

Solving equation (1), we get the value V = $10740.36. (Answer)