Question

Elise is buying a new car selling for $21,450. The rate of depreciation on this type of car is 8% per year. What is the value of the car in five years? Show your work.

Answer 1

Answer:

$14,137.3

Step-by-step explanation:

21450*0.92^5

so put the og value, then the value its gonna have but in decimal form - so 92% would be 0.92 and make the amount of years the square

solve

$14,137.3

Answer 2

The value of the car after five years will be $14135.5.

What is Compound interest?

Compound interest is defined as interest paid on the original principal and the interest earn on interest of principal.

What is percentage?

The percentage is defined as the ratio expressed as a fraction of 100.

The percentage is denoted by sign of %.

For example, if XYZ scored 46% marks in his test, it means that he scored 46 marks out of 100. It is written as 46/100 in the fraction form and 46:100 in terms of ratio.

The initial value of car (P) = $21,450  

The rate of depreciation of car is 8% per year.

Time period (n) = 5 years  

The value of the car after five years

A = P ( 1 - r/100 )ⁿ  

Substitute the values of P, r and n in formula

A = 21450 ( 1 - 8/100 )⁵

A = 21450 ( 1 - 0.08 )⁵

A = 21450 ( 0.92 )⁵  

A = 21450 ( 0.659 )

A = 14135.5

Hence, the value of the car after five years will be $14135.5.

Learn more about Compound interest here:

brainly.com/question/25857212

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