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29 June, 15:25

A new car is purchased for 23400 dollars. The value of the car depreciates at 11.5% per year. To the nearest year, how long will it be until the value of the car is 12700 dollars?

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  1. 29 June, 15:54
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    Answer: 5 years

    Step-by-step explanation:

    Using same formula as for Compound Interest:

    12700 = 23400 (1-.115) ^t

    12700 = 23400 x 0.885^t

    0.885^t = 127/234

    Convert decimal into fraction:

    177/200^t = 127/234

    Take logarithm of both sides of thr equation:

    t = log 177/200 (127/234)

    t = 5.00242
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