Answer:
The value of the car will be $2,363.19 after 14 years
Step-by-step explanation:
The rule of depreciating is
, where
A is the new value
P is the original value
r is the rate in decimal
t is the time in years
∵ A new car is purchased for 18000 dollars
∴ P = 18,000
∵ It depreciates at a rate of 13.5% per year
∴ r = 13.5% = 13.5/100 = 0.135
∵ We need to find how much it will be worth after 14 years
∴ t = 14
→ Substitute all of these values in the rule above to find A
∵
→ Use your calculator to find the answer
∴ A = 2,363.186569
→ Round it to the nearest cent (2d.p.)
∴ A = 2,363.19
∴ The value of the car will be $2,363.19 after 14 years.
