QuestionThe general equation for depreciation is given by , where current value, original cost, rate of depreciation, and time, in years. A car was purchased 6 years ago for . If the annual depreciation rate is , which equation can be used to determine the approximate current value of the car?
Studdy Solution
STEP 1
1. The formula for depreciation is given by .
2. The original cost of the car is \$25,000.
3. The rate of depreciation \( r \) is 11%, which is equivalent to 0.11 in decimal form.
4. The time \( t \) is 6 years.
STEP 2
1. Convert the depreciation rate from a percentage to a decimal.
2. Substitute the known values into the depreciation formula.
3. Simplify the expression to match one of the given options.
STEP 3
Convert the depreciation rate from a percentage to a decimal:
STEP 4
Substitute the known values into the depreciation formula :
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Thus, the equation becomes:
STEP 5
Simplify the expression:
Calculate :
Substitute back into the equation:
The equation that can be used to determine the approximate current value of the car is:
This matches the first option provided.
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