You buy a used car for $15,000. It depreciates at the rate of 23% per year. Find the value of the car for the following years. A. 1 year

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You buy a used car for $15,000. It depreciates at the rate of 23% per year. Find the value of the car for the following years. A. 1 year B. 3 years. Explain how you got your answer.

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    2021-10-14T01:41:04+00:00

    Initial cost, P = 15000
    Annual depreciation, i = 0.23 

    Value at end of year n:
    V(n)=P(1-i)^n

    A. At end of year 1 (n=1)
    V(1)=15000(0.77)= 11550

    B. At end of year 3 (n=3)
    V(3)=15000(0.77^3) = 6848.00

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