Question

A vehicle purchased for $29,800 depreciates at a constant rate of 8%. Determine the approximate value of the vehicle 11 years after purchase. Round to the nearest whole dollar.

Answer 1

Looks like the value will be 29.800$ * (0.92)^11 around 11909 dollars

Answer 2

The value of the vehicle would be $ 11,909

Explanation:

Given,

The original value of the vehicle, P = $29,800,

Rate of depreciation, r = 8% = 0.08

Time, t = 11 years,

Thus, the value of the car after 11 years,

`A=P(1-r)^t`

`=29800(1-0.08)^(11)`

`=29800(0.92)^(11)`

= 11909.193861

≈ $ 11,909