A new car is purchased for 17300 dollars. The value of the car depreciates at 9.25% per year. What will the value of the car be, to the nearest cent, after 15 years?

Answer 1

A = P(1-r)n^t depreciation annually

r = annual rate of change, 9.25% = 0.0925; t = time measured in years= 15,

n= number of compounding periods per year = 1

P= original value

A= depreciated value at r rate after t years

A = 17,300(1-0.0925)^15

= 17,300(.9075)^15

= 17,300(.23318441)

= $4,034.09

A= Pe^rt continuous depreciation

= 17,300e^-.0925(15)

= 17,300e^-1.3875

= 17,300(.249699)

= $4,319.79

A = P(1-r/n)^nt n= 12, depreciation monthly

A = 17,300(1-.0925/12)^12(15)

= $4,296.01

A = P(1-r/365.25)^365.25(15) depreciation daily n=365.25

A= P(1-r/4)^4(15) depreciation quarterly n=4