Question

Colin buys a car for £31300.
It depreciates at a rate of 2% per year.
How much will it be worth in 4 years?
Give your answer to the nearest penny where appropriate.

Answer 1

$\rule{400}{4}$

Answer :-

Given :-

Actual price = £ 31,300

Rate % = 2 %

Time period = 4 years

$\rule{400}{4}$

Required to find :-

1. How much will the car worth after 4 years ?

$\rule{400}{4}$

Formulae used :-

Actually we have to use the formula related to simple Interest .

So,

$\mathrm{ Interest = \dfrac{Principal \times rate \times time }{100}}$

Here,

Interest refers to the amount which is going to be depreciated .

Principal refers to the Actual price of the car

And remaining have their respective meaning .

Similarly,

$\red{\tt{ Reduced \; price \; of \; the \; car }{\blue{\; = \: Principal - Interest }}}$

$\rule{400}{4}$

Solution :-

Given ,

Actual price of the car = £ 31,300

Rate % = 2 %

Time period = 4 years

So,

Using the formula

$\mathrm{ Interest = \dfrac{Principal \times rate \times time }{100}}$

Hence,

$\tt{ Interest = \dfrac{ 31300 \times 2 \times 4 }{100}}$

$\tt{ Interest = 313 \times 2 \times 4 }$

$\red{\underline{\mathsf{ Interest = 2,504 }}}$

So,

Interest = 2,504 pounds .

But we know that,

Interest = Amount depreciated

Hence,

Amount depreciated is 2,504 pounds .

Using the formula,

$\red{\tt{ Reduced \; price \; of \; the \; car }{\blue{\; = \: Principal - Interest }}}$

Similarly,

The cost of the car after 4 years is

Reduced price of the car = 31300 - 2,504

Reduced price = 28,796 pounds .

Reduced price = 28,800 pounds ( approximately )

Therefore,

The price of the car after 4 years is 28,800 pounds .

$\rule{400}{4}$

Answer 2

Answer:

28870.12

Step-by-step explanation: