Question

Bruce bought his car for $24,380. It is expected to depreciate an average of 14% each year during the first 6 years.

What will the approximate value of his car be in 6 years? Explain.
$9863
$9926
$10,314
$10,527

Answer 1

$9863

Explanation:

Answer 2

Use the depreciation formula.


`\sf A=P(1-(R)/(100))^n`

Where 'P' is the principal amount, 'R' is the rate, and 'n' is the time in years. Plug in what we know:


`\sf A=24380(1-(14)/(100))^6`

Divide:


`\sf A=24380(1-0.14)^6`

Subtract:


`\sf A=24380(0.86)^6`

Simplify the exponent:


`\sf A\approx 24380(0.40456723513)`

Multiply:


`\sf A\approx \boxed{\sf\$ 9863}`