Devon purchased a new car valued at $16,000 that depreciated continuously at a rate of 35%. Its current value is $2,000. The equation mc025-1. Jpg represents the situation, where t is the age of the car in years and r is the rate of depreciation. About how old is Devon’s car? Use a calculator and round your answer to the nearest whole number. 1 year 2 years 5 years 8 years.
5 (2 stars)
5 (2 stars)
japhetlaguna53 10 months ago13 response - 0 helps
C 5 years
The age of the car that Devon purchased is given by: Option C: 5 years
How to calculate compound interest's amount?
If the initial amount (also called as principal amount) is P, and the interest rate is R% per unit time, and it is left for T unit of time for that compound interest, then the interest amount earned is given by:
The final amount becomes:
We can use compound interest's formula (with a bit modification if necessary) whenever there is compounding on a base amount on some fixed rate for some time.
For this case, there is decrement happening, so rate can be taken negative. Thus, we take:
R = -35%
Let the car is T years old.
Then, as we have: Initial price of the car = P = $16000, and the final price of the car = A = $2000, thus, we get:
Thus, the age of the car that Devon purchased is given by: Option C: 5 years
Learn more about compound interest here: