Question

Kelly bought a new car for $20,000. The car depreciates at a rate of 10% per year.

1)Write an equation to model the car’s value.
2)Use your equation to determine the value of the car six years after Kelly purchased it.

Answer 1

Use the formula.

P=P'(1-R/100)^T

where,

P=final rate

P'=initial rate

R=Rate of Depreciation

T=Time.