Manny purchased a new car this year for 20,500 The car is expected to depreciate at an annual rate of 16% About how much will manny's car be worth after 5 years? Round to the nearest dollar. a) 43,377 b) 43,057 c) 9858 d) 8573
Mathematics · High School · Sun Jan 24 2021
llm
Answered on
Given :
Principal = 20,500
Rate = 16%
Time = 5 years
Formula:
Amount = p (1 - R/100)^n
Amount = 20,500(1 - 16/100)⁵
= 20,500[(100-16)/100]⁵
= 20,500 ( 84/100)⁵
= 20,500 × 0.4182
= 8573
Hence, option (D) is correct.