A new car is purchased for $23700$ dollars.
The value of the car depreciates at $13.5 %$ per year.
What will the value of the car be, to the nearest cent, after $10$ years?

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Solution

The value of the car after $10$ years is $$ 5557.8 .$
Explanation to correct answet
What is depreciation?
Depreciation refers to the reduction in the value of an asset over time and such valued reductions are reflected in the Balance sheet at the year ended.
Given
A new car is purchased for $23700$ dollars.
The value of the car depreciates at $13.5 %$ per year.
According to the question,
The value of the car depreciates therefore the amount of the car is determined by the formula,
$Amount = P {(1 - \frac{r}{100})}^{t} Where, P = $ 23700, r = 13.5 % and t = 10 years$
Substitute all the values in the formula,
$Amount = P {(1 - r)}^{t} Amount = 23700 {(1 - 0.135)}^{10} Amount = 23700 {(0.865)}^{10} Amount = 23700 \times 0.23 Amount = 5557.8$
Hence, the value of the car after $10$ years is $$ 5557.8 .$

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A new car is purchased for 23700 dollars. The value of the car depreciates at 13.5% per year. What will the value of the car be, to the nearest cent, after 10 years?

A new car is purchased for $23700$ dollars.
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