Kelly bought a new car for $20,000. The car depreciates at a rate of 10% per year.

1) Write an equation to model the car's value.

2) Use your equation to determine the value of the car six years after Kelly purchased it.

Question

Jaelynn Shepard

15 October, 09:41

+5

Answers (1)

Know the Answer?

Isaiah Finley · Answer 1

Use the formula.

P=P' (1-R/100) ^T

where,

P=final rate

P'=initial rate

R=Rate of Depreciation

T=Time.

Kelly bought a new car for $20,000. The car depreciates at a rate of 10% per year.1) Write an equation to model the car's value.2) Use your equation to determine the value of the car six years after Kelly purchased it.