Rate of depreciation=100%/number of years x2, algebra homework help
My question is how did it equals out to V=559.87 on the 7th Year of depreciation? I tried fallowing the steps but don’t seem to get that answer. The ^ symbol is used how in this problem? Thank you in advance.
You’ve probably heard someone say, “The car you buy loses value right when you drive it off the lot.” Well, it’s true. And we can use this week’s lesson to learn how the value drops over time. Use the graph below to write an equation that represents car value depreciation. Use the equation to predict the car value 7 years after purchase. Use the variables V for Value and Y to represent the year since purchase. Explain each step you took to arrive at your answer.
Rate of depreciation=100%/number of years x2
Number of years= 5
=100%/5×2
Rate of depreciation =40%
Equation that represents car value depreciation is;
V=C (1-r) ^y
Original cost of car= $20,000
V=?
r= 0.4
y=5
v=$20,000 (1-0.4) ^5
v=$20,000 (0.6) ^ 5
v= $20,000×0.07776
v= $1,555.2
The value for the car after 5 years was quoted as $ 1,555.2
The equation representing car value depreciation is; v= $20,000 (0.6) ^y
Therefore the value of the car after 7 years of purchase is obtained as follows;
Whereby, C= $ 20,000
V=?
r= 0.4
y=7
Hence; the equation of the graph above is
v=$ 20,000(0.6) ^y
Therefore, the value of the car after 7 years will be given by;
v= $ 20,000(0.6) ^7
v= $ 559.87
