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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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  1. 5 October, 04:57
    0
    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)
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