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23 November, 12:34

Manny purchased a new car this year for $20,500. The car is expected to depreciate at an annual rate of 16%.

Using the model, about how much will Manny's car be worth after 8 years? Round to the nearest dollar.

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Answers (2)
  1. 23 November, 12:38
    0
    The value of the vehicle will be $5081.00
  2. 23 November, 13:02
    0
    Formula

    V = c (1-r) ^t

    V = future value

    C = current value

    r = depreciation rate p/yr

    t = number of periods

    v = 20500 * (1-0.16) ^8

    v =
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