Question

A new car is purchased for 24500 dollars. The value of the car depreciates at 14.75% per year. What will the value of the car be, to the nearest cent, after 14 years?​

Answer 1

Given:

Price of the car = $ 24,500

Depreciation Rate = 14.75%

$\begin{gathered}\\\end{gathered}$

To Find:

The value of the car after 14 years

$\begin{gathered}\\\end{gathered}$

Formula:

$\text{Price after depreciation } = P(1 - \dfrac{r}{100})^nPrice after depreciation =P(1−100r)n$

Solution:

$\begin{gathered}\\\end{gathered}$

$\text{Price after 14 years} = 24500(1 - \dfrac{14.75}{100})^{14}$

$\text{Price after 14 years} = 24500(0.8525)^{14}$

$\text{Price after 14 years} = \ 2623.54$

Answer:- The price of the car will be $2623.54 after 14 years