No Rylie buy a car at a price of $18,000. the price of the car depreciated A constant rate of R% Per year. The price of the car after two years was $13,005

Question

ANSWER ASAP

Answer 1

If the value depreciates at R% per hear then each year

the value is (1-R) times the previous years value:

 

v_t = v₀(1-R)^t

V_t = value after t years = 13,005

t = time in years = 2

v₀ = initial value = 18,000

 

13005 = 18000(1-R)²

13005/18000 = (1-R)²

Take square root of both sides

1-R = √(13005/18000)

 

R = 1 - √(13005/18000)

R = 1 - 0.85

R = 0.15

 

The depreciation rate is 15% per year

 

Check:  13005 = 18000(1-0.15)²

             13005 = 13005

Answer is verified