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.

Question

23 November, 12:34

+4

Answers (2)

Know the Answer?

Madilynn Serrano · Answer 1

The value of the vehicle will be $5081.00

Britney Mcgrath · Answer 2

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 =

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.