Posted by **Sara** on Wednesday, January 12, 2011 at 4:04pm.

he value of a new car depreciates at a rate of 12% per year.

Write an equation to represent the approximate value of a car purchased for $23 000.

Determine the value of the car two years after it is purchased.

Approximately how many years will it take until the car is worth $2300?

- Advanced Functions -
**Henry**, Thursday, January 13, 2011 at 8:42pm
1. V= C - rtC,

Eq: V = C(1 - rt).

V = value.

C = cost.

r = rate expresed as a decimal.

t = time in years.

2. V = 23000(1 - 0.12*2),

V = 23000 * 0.76 = 17480.

3. V = 23000(1 - 0.12t) = 2300,

23000(1 - 0.12t) = 2300,

Divide both sides by 23000:

1 - 0.12t = 0.1,

-0.12t = 0.1 - 1 = -0.90,

t = -0.90 / -0.12 = 7.5 yrs.

- Advanced Functions -
**Henry**, Sunday, June 29, 2014 at 9:01pm
Correction:

1. Eq: V = C(1-r)^t

2. V = 23,000(1-0.12)^2 = $17,811.20

3. V = 23,000(1-0.12)^t = 2300

(0.88)^t = 0.1

t*Log(0.88) = Log0.1

t = Log 0.1/Log0.88 = 18 Years.

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