Question

Matt purchased a new car for $30,000. The car depreciates approximately 12% of its value each year compounded continuously.. How much is it worth after 5 years? Round the answer to nearest dollar.

Answer 1

Answer: deprecation is going down in value

just know that if depreciation is involved it will NEVER be greater than the amount the car was. $16464

Step-by-step explanation:

if you were to use this formula, don’t!

30000(1+ -.012/4) ^4*5

Use the compounded continuously formula

A= intial amount

Pe^rt

A=30000e

the small e means euler

r= rate

t= t

A= 30000e ^(-0.12x5)

=$16464

the answer is 16,464