The general equation for depreciation is given by y = A(1 – r)t, where y = current value, A = original cost, r = rate of depreciation, and t = time, in years. A car was purchased 6 years ago for $25,000. If the annual depreciation rate is 11%, which equation can be used to determine the approximate current value of the car?
Y= 25,000(0.89)^6
I think you might mean
y = A(1 – r)^t
y = 25,000 (1-.11)^6
= 25,000(.497)
= 12,424.53
To determine the approximate current value of the car, we can use the given equation for depreciation:
y = A(1 – r)t
Where:
y = current value
A = original cost
r = rate of depreciation
t = time (in years)
The car was purchased 6 years ago for $25,000, and the annual depreciation rate is 11%. Therefore, we can substitute the values into the equation:
y = 25,000(1 – 0.11)^6
Simplifying:
y = 25,000(0.89)^6
Thus, the equation that can be used to determine the approximate current value of the car is:
y = 25,000(0.89)^6
To determine the approximate current value of the car, we can use the general equation for depreciation, which is given as:
y = A(1 – r)t
Where:
y = current value
A = original cost
r = rate of depreciation
t = time in years
In this case, we are given that the car was purchased 6 years ago for $25,000, and the annual depreciation rate is 11%. Therefore, we can substitute the given values into the equation.
A = $25,000 (original cost)
r = 11% = 0.11 (rate of depreciation)
t = 6 years (time)
Substituting these values into the equation, we get:
y = $25,000(1 - 0.11)^6
Simplifying the equation:
y = $25,000(0.89)^6
Now, we can calculate the approximate current value of the car by evaluating the equation:
y ≈ $25,000(0.89)^6
Using a calculator, we get:
y ≈ $15,238.78
Therefore, the approximate current value of the car is approximately $15,238.78.
The equation that can be used to determine the approximate current value of the car is:
y = $25,000(0.89)^6