Question

The value of a car is $18,000 and is depreciating 6% each year. What will the value of the car be in 7 years?

y=a(b)x

Answer 1

• $11672.60

Explanation:

Given:

• Initial value a = $18000
• Rate of depreciation 6% or b = 1 - 0.06 = 0.94
• Time x = 7 years

Find the value of the car in 7 years:

• y = abˣ
• y = 18000*0.94⁷ = 11672.60