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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
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