Question

A new car depreciates each year by 2.8%. When the car is 8 years old, it has a value of $42,547.24. Find the car’s original value.

Answer 1

Given :

A new car depreciates each year by 2.8%. When the car is 8 years old, it has a value of $42,547.24.

To Find :

The car’s original value.

Solution :

Formula of car depreciation is :

`A= P( 1- (R)/(100))^n\\\\42547.24 = P( 1 - (2.8)/(100))^8\\\\42547.24 = P* 0.8\\\\P = (42547.24)/(0.8)\\\\P = \$53184.05`

Hence, this is the required solution.