Hey guys. I really need help with my assignment. Your help will be so much appre
ID: 3014914 • Letter: H
Question
Hey guys. I really need help with my assignment. Your help will be so much appreciated. Thanks!!
A car was valued at $37,000 in the year 1992. The value depreciated to $14,000 by the year 2000 What was the annual rate of change between 1992 and 2000? r = Round the rate of decrease to 4 decimal places. What is the correct answer to part A written in percentage form? r= %. Assume that the car value continues to drop by the same percentage. What will the value be in the year 2005 ? value = $ Round to the nearest 50 dollars.Explanation / Answer
$ 37000 ---- 1992
$ 14000 ----- 2000
no. of years = 8
So, C = Co(r)^t
=37000( r)^8
14000 = 37000(r)^8 ;
r = (14000/37000)^1/8 =0.8856 ( annual rate of change
% annual rate of change = 1- 0.8856 = 11.4%
Value on 2005 n= 13
C = 37000(0.8856)^13 = $ 7625.89