Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

A vehicle purchased for $20,700 depreciates at a constant rate of 4%. Determine the approximate value of the vehicle 12 years after purchase. Round to the nearest whole dollar.

Sagot :

Given:

Initial value of vehicle = $20,700

Rate of depreciation = 4% = 0.04

Time, t = 12 years.

Let's find the value of the vehicle after the 12 years.

Let's apply the exponential decay formula:

[tex]y=P(1-r)^t[/tex]

Where:

P = 20700

r is the rate of decay = 0.04

t is the time taken in years = 12 years.

Now, substitute these values into the equation and solve for y:

[tex]\begin{gathered} y=20700(1-0.04)^{12} \\ \\ y=20700(0.96)^{12} \\ \\ y=20700(0.6127097573) \\ \\ y=12683.09\approx12683 \end{gathered}[/tex]

Therefore, the value of the vehicle 12 years after purchase is $12,683

• ANSWER:

$12,683

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.