Answer:
The function is:
21000 * (1 - [tex]\frac{16}{100}[/tex])[tex]^{n}[/tex]
The price after 3 years would be D) $12,447
Step-by-step explanation:
Because the value is depreciating, the price will decrease.
The function formula is:
Amount x (1 ± [tex]\frac{percentage}{100}[/tex])[tex]^{n}[/tex]
Where n is the amount of years and the ± is a + if the value is increasing, and a - if the value is depreciating.
So plug the values in, with a minus:
21000 * (1 - [tex]\frac{16}{100}[/tex])[tex]^{n}[/tex]
The price after 3 years would simply be the following equation:
21000 * (1 - [tex]\frac{16}{100}[/tex])[tex]^{3}[/tex]
Which gives the result 12446.7 or 12447 to 1.d.p
This means that the answer is D) $12,447!
