Devon purchased a new car valued at $16,000 that depreciated continuously at a rate of 35%. It's current value is $2,000. the equation 2,000=16,000 (1-r) ^t represents the situation, where t is the age of the car in years and r is the rate of depreciation. About how old is Devon's car?

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Mathematics

Aubrey Fletcher

Today, 00:56

Devon purchased a new car valued at $16,000 that depreciated continuously at a rate of 35%. It's current value is $2,000. the equation 2,000=16,000 (1-r) ^t represents the situation, where t is the age of the car in years and r is the rate of depreciation. About how old is Devon's car?

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Helen Johnston · Answer 1

We are given with the equation 2,000=16,000 (1-r) ^t where $2,000 is the current value and $16,000 is value of the car when purchased. r is the rate of depreciation equal to 35% or 0.35. We find t, age of the car using the calculator which is 4.83 years.