Acaris bought for $12500. Its value depreciates by 15% per year. a) Calculate its value after: i) 1year ii) 2years b) After how many years will the car be worth less than $1000?
To calculate the value of the car after a certain number of years, we need to know the initial value and the rate of depreciation per year.
a)
The initial value of the car is $12,500, and the rate of depreciation is 15% per year.
i) 1 year:
To calculate the value of the car after 1 year, we need to subtract 15% of the initial value from the initial value itself.
Value after 1 year = Initial value - (15% of Initial value)
Value after 1 year = $12,500 - (15/100) x $12,500
Value after 1 year = $12,500 - $1,875
Value after 1 year = $10,625
ii) 2 years:
To calculate the value of the car after 2 years, we need to subtract 15% of the value after 1 year from the value after 1 year.
Value after 2 years = Value after 1 year - (15% of Value after 1 year)
Value after 2 years = $10,625 - (15/100) x $10,625
Value after 2 years = $10,625 - $1,593.75
Value after 2 years = $9,031.25
b)
To find out after how many years the car will be worth less than $1000, we can set up an equation.
Let's assume x is the number of years.
Value after x years = $1000
We can use the formula for the value of the car after x years.
Value after x years = Initial value - (15% of Initial value) ^ x
Setting this equal to $1000 and solving for x:
$1000 = $12,500 - (15/100) x $12,500 ^ x
Now, we can solve this equation to find the value of x.