Question

Ben buys a car for $50,000. The value of the car decreases at a rate of 4% per year. How much will the car be worth in 3 years?

Answer 1

Answer:

$44,236.8 is the worth of the car

Step-by-step explanation:

Given

Price of the car = $50,000           (P)

Depreciation rate = 4% per year  (R)

Time = 3 years                               (n)

Depreciation formula = P ( 1 - R/100)^n

Amount after Depreciation = 50,000 ( 1 - 4/100)^3

Amount after Depreciation = 50,000 (96/100)^3

Amount after Depreciation = 50,000 × 96/100 × 96/100 × 96/100

Amount after Depreciation = 44,236,800,000 / 10,00,000

Amount after Depreciation = $44,236.8

Depreciated amount = $50,000 - $44,236.8

Depreciated amount = $5763.2

Hence, the worth of the car is $44,236.8