Answer:
Amount of car in 2012 = $1,242.55 (Approx)
Step-by-step explanation:
Given:
Rate of depreciation(d) = 18% = 0.18
Amount of car in 1998 = $19,995
Find:
Amount of car in 2012
Computation:
Number of year(n) = 14 year
[tex]Amount\ of\ car\ in\ 2012 = Amount\ of\ car\ in\ 2012 [1-d]^n[/tex]
Amount of car in 2012 = 19,995[1-0.18]¹⁴
Amount of car in 2012 = 19,995[0.82]¹⁴
Amount of car in 2012 = 19,995[0.0621432458]
Amount of car in 2012 = 1,242.5542
Amount of car in 2012 = $1,242.55 (Approx)
