Posted by **Leah** on Sunday, March 9, 2014 at 8:21pm.

A company replaces their cars every 6 years. A car is worth $13520 after 2 years. The company uses a depreciation rate of 35% a year.

a) How much will the car be worth when the company replaces it?

b) How much did the car cost when it was purchased?

- Math -
**Steve**, Monday, March 10, 2014 at 5:34am
if the initial value is v,

v - .35(2) = 13520

Now, knowing v, after n years the car is worth

v(1 - .35n)

Note that the car is fully depreciated after only 3 years, if the depreciation is 35% of the full value each year.

## Answer This Question

## Related Questions

- maths - a car depreciates at rate of 10%per year. the car cost £20000 new. (a) ...
- Algebra - Three years after purchase, a car is estimated to be worth $24,000. At...
- Math..urgent.pls help!:( - A Volkswagon Beetle convertible sedan is worth $16,...
- Financial Accounting - E3-30A. Account for depreciation expense. (LO 1, 3). ...
- Financial Accounting 1 - Maximus Dog Company purchased a new supply van on ...
- Math: Personal Finance - In order to buy a new car, you finance $20,000 with no ...
- Finance, Economics - A small vessel (this means 10 year life) was purchased by a...
- math - Jason uses his car for his job. He is allowed to depreciate the car 7% ...
- algebra 2 ap - Jason uses his car for his job. He is allowed to depreciate the ...
- Math - A company owns office cars worth a total $587,000.The cars are ...

More Related Questions