Question

A new car depreciates each year by 2.8%. When the car is 8 years old, it has a value of $42,547.24. Find the car’s original value.

Answer 1

Given :

A new car depreciates each year by 2.8%. When the car is 8 years old, it has a value of $42,547.24.

To Find :

The car’s original value.

Solution :

Formula of car depreciation is :

$A= P( 1- \dfrac{R}{100})^n\\\\42547.24 = P( 1 - \dfrac{2.8}{100})^8\\\\42547.24 = P\times 0.8\\\\P = \dfrac{42547.24}{0.8}\\\\P = \ 53184.05$

Hence, this is the required solution.