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The average price of a motorcycle is $9,000. If the value depreciates an average of 12% per year, how much of the motorcycle's value have you lost after 4 years? (By how much has the value decreased?) Show work
A)$5,397
B)$14,162
C)$5,162
D)$3,603

Respuesta :

MrRoyal

Depreciation are represented by exponential function

You have lost $3603 of the motorcycle's value after 4 years

How to determine the depreciation

The given parameters are:

  • Initial value = $9,000
  • Rate, r = 12%
  • n = 4, the number of years

The function to represent the depreciation is calculated as:

[tex]y = a(1 - r)^n[/tex]

So, we have:

[tex]y = 9000 * (1 -12\%)^4[/tex]

Multiply

[tex]y = 5397[/tex]

The above represents the new value of the motorcycle.

The depreciated value is then calculated as:

[tex]Value = 9000 - 5397[/tex]

[tex]Value = 3603[/tex]

Hence, you have lost $3603 of the motorcycle's value after 4 years

Read more about depreciation at:

https://brainly.com/question/12940982

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