7) For tax purposes, a car rental company
assumes each car in their fleet depreciates
by 6% per year. If the initial value of a
car is $38,400.00, what will the value be
when the car is 7 years old?
A) 38400 0.987 = $33,336.02
.
222
(B) 38400 0.767 = $5,623.75
C) 38400 0.947 ≈ $24,901.54
7
D) 153600 0.94 = $99,606.16

Question

contestada

Respuesta :

65948236 65948236 · Answer 1 · 2024-03-13T17:07:45+01:00

Answer:The correct calculation for determining the value of the car when it is 7 years old based on a 6% annual depreciation rate is as follows:

Initial value of the car: $38,400.00

After 7 years of 6% annual depreciation:

Value = Initial Value * (1 - Depreciation Rate)^Number of Years

Value = $38,400 * (1 - 0.06)^7

Value = $38,400 * (0.94)^7

Value ≈ $24,901.54

Therefore, the correct option is:

C) $38,400 * 0.94^7 ≈ $24,901.54

The value of the car when it is 7 years old would be approximately $24,901.54.

Step-by-step explanation:

lee5552g lee5552g · Answer 2 · 2024-03-13T17:08:24+01:00

lee5552g lee5552g

Bout B would be the correct answer because 6% of $38k but it’s for tax reasons so it’s harder

Answer Link