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A new car, valued at $28,000, depreciates at 9% per year. What is the value of the car one year after purchase? |
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Answer» $25,480Step-by-step EXPLANATION:Present VALUE (P) = $28,000Rate of depreciation (R) = 9%TIME (n) = 1 year=> Value of CAR after 1 year (A) = P (1 - R/100)ⁿ=> A = 28,000 (1 - 9/100)¹=> A = 28,000 × 91/100=> A = $25,480 |
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