Question

The valueV of an item afterI years is given by the following formula, assuming linear depreciation,V = C - Crt,where C is the original cost and r is the rate of depreciation expressed as a decimal.If you buy a car for $30,152 and it depreciates linearly at a rate of 22 % per year, what will be its valueafter 27 months? Round your answer to the nearest cent.AnswerKeypadKeyboard ShortcuS

Answer 1

Solution

For this case we have the following formula:

V = C -Crt = C(1-rt)

We know that: C= 30152, r= 0.22, t= 27/12

Replacing we got:

$V=30152(1-0.22\cdot\frac{27}{12})=15226.76$

For this case the answer is:

15226.76