Question

Devon purchased a new car valued at $16,000 that depreciated continuously at a rate of 35%. It's current value is $2,000. the equation 2,000=16,000(1-r)^t represents the situation, where t is the age of the car in years and r is the rate of depreciation. About how old is Devon's car?

Answer 1

We are given with the equation 2,000=16,000(1-r)^t where $2,000 is the current value and $16,000  is value of the car when purchased. r is the rate of depreciation equal to 35% or 0.35. We find t, age of the car using the calculator which is 4.83 years.