Answer:
The depreciated value of the car after 1 yr is $16,353
The depreciated value of the car after 2 yr is $12,264.75
Step-by-step explanation:
Given
purchase amount P= $21,804
rate of depreciation R= 25%
applying the formula for the car deprecation we have
[tex]A= P*(1-\frac{R}{100} )^n[/tex]
Where,
A is the value of the car after n years,
P is the purchase amount,
R is the percentage rate of depreciation per annum,
n is the number of years after the purchase.
1. The depreciated value of the car after 1 yr is
n=1
[tex]A= 21,804*(1-\frac{25}{100} )^1\\\\A= 21,804*(1-0.25 )^1\\\\A= 21,804*0.75\\\\A= 16353[/tex]
The depreciated value of the car after 1 yr is $16,353
2. The depreciated value of the car after 2 yr is
n=2
[tex]A= 21,804*(1-\frac{25}{100} )^2\\\\A= 21,804*(1-0.25 )^2\\\\A= 21,804*0.75^2\\\\A= 21,804*0.5625\\\\A= 12264.75[/tex]
The depreciated value of the car after 2 yr is $12,264.75
