Question

Pls help me!!!! I'm stuck on how to solve this!!??

1. Mia bought her car $18, 710. it is expected to depreciate an average of 12% each year during the first 8 years. what will the approximate value of her car be in 8 years?

A) 5847
B) 6729
C) 7123
D) 7687

Answer 1

Let A represent the value of the car after each year.
A= initial value (P)×(1+percent increase(r)) ^time
A=P×(1+r)^t
A=18710×(1+(-12%))^8
A=18710×(1-12%)^8
A=18710×(1-0.12)^8
A=18710×(0.88)^8
A= 6728.7619591115
The best approximation is 6729
Therefore the value of the car will be about $6729 after 8 years
Your answer is B.