Question

Jared bought a Suzuki 1000 for $12,698. If it depreciates at a rate of 11% per year, how much will it be worth in 3 years

Answer 1

Original price = P = $12,698
Depreciation rate = r = 11% = 0.11
Time in years = t = 3
New price = A

The formula used will be:


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

Using the values, we get:


`A=12698(1-0.11)^(3)=8951.70`

Thus, the worth of Suzuki after 3 years will be $8951.70