SOLUTION: An $18,000 car depreciated at a rate of 16% per year. How old will the car be when it is worth $12,000?

Question 614782: An $18,000 car depreciated at a rate of 16% per year. How old will the car be when it is worth $12,000?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An $18,000 car depreciated at a rate of 16% per year. How old will the car be when it is worth $12,000?
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Each year it is worth 84% of what it was worth last year.
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Equation:
18000(0.84)^t = 12000
0.84^t = 2/3
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t = log(2/3)/log(0.84) =
t = 2.326 years
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Cheers,
Stan H.
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