A new car is purchased for 15500 dollars. The value of the car depreciates at 7. 5% per year. What will the value of the car be, to the nearest cent, after 6 years?

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abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2022-03-31T12:55:51+02:00

Assuming a new car is purchased for 15500 dollars. The value of the car after 6 years is $9709. 17.

Using this formula

Future value=Principal (1-Interest rate)^Number of years

Where:

Principal=15500

Interest rate=7.5%

Number of years=6 years

Let plug in the formula

Future value=$15,500 ×( 1 - 0.075 )^6

Future value=$9.709.169

Future value = $9709. 17(Approximately)

Inconclusion the value of the car after 6 years is $9709. 17.

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