Answer: The car would be worth $5247 after 10 years.
Step-by-step explanation:
The rate at which the value of the car is deprecating is exponential. We would apply the formula for exponential decay which is expressed as
A = P(1 - r)^t
Where
A represents the value of the after t years.
t represents the number of years.
P represents the initial value of the car.
r represents rate of decay.
From the information given,
P = $30,000
r = 16% = 16/100 = 0.16
t = 10 years
Therefore
A = 30000(1 - 0.16)^10
A = 30000(0.84)^10
A = $5247
Answer:
$5247
Step-by-step explanation:
Reduced by 16% means it's 84% of the previous year
30000×(0.84^10)
= $5,247.0368629794
