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A new car is purchased for 16400 dollars. The value of the car depreciates at 8.25% per year. What will the value of the car be, to the nearest cent, after 10 years?

Verified Answer :

Answer:

$6932.73.

Step-by-step explanation:

Principal = $16400

Rate of decrease = 8.25%

Now we are supposed to find What will the value of the car be, to the nearest cent, after 10 years?

Formula : \(A=P(1-\frac{r}{100})^t\)

where A is the amount

r is the rate of decreasing in % =8.25%

t is the time =10

P is the principal =$16400

Substituting the values:

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Hence the value of the car after 10 years will be $6932.73.

The value of the car in 10 years will be $6,932.73.

What is depreciation?

Depreciation is when the value of an asset declines as a result of wear and tear. This means that with the passage of time, the value of the car would be decreasing.

What would be the value of the car?

The formula for calculating future value of the car is:

FV = P (1 - r)^n

Where:

  • FV = Future value
  • P = Present value
  • R = rate of depreciation
  • N = number of years

16400 ( 1 - 0.0825)^10

16400(0.9175)^10 = $6,932.73

To learn more about depreciation, please check: https://brainly.com/question/18760477

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