A car that costs $52,400 depreciates at the rate of 9.8% every year. how much in total, to the nearest cent, will the car depreciate after 10 years?

Question

Mathematics

Jesse Duran

5 October, 01:04

A car that costs $52,400 depreciates at the rate of 9.8% every year. how much in total, to the nearest cent, will the car depreciate after 10 years?

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Answers (1)

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Mitch · Answer 1

Use depreciation formula:

F=P (1-i) ^n

where

F=future value

P=present value=52400

i=annual depreciation rate=9.8%=0.098

n=number of years.=10

Future value,

F=52400 (0.902) ^10

=52400*.0.3565

=$18680.85 (depreciated value after 10 years)