Today a car is valued at $42000. the value is expected to decrease at a rate of 8% each year. what i

Discussion in 'Calculator Requests' started by math_celebrity, Sep 1, 2018.

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  1. math_celebrity

    math_celebrity Administrator Staff Member

    Today a car is valued at $42000. the value is expected to decrease at a rate of 8% each year. what is the value of the car expected to be 6 years from now.

    Depreciation at 8% per year means it retains (100% - 8%) = 92% of it's value. We set up our depreciation function D(t), where t is the number of years from right now.
    D(t) = $42,000(0.92)^t

    The problem asks for D(6):
    D(6) = $42,000(0.92)^6
    D(6) = $42,000(0.606355)
    D(6) = $25,466.91
     

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