SOLUTION: if a car is worth £16,000 and then the price minimises by 17% every year, what is it’s worth after 9 years?

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Question 1097928: if a car is worth £16,000 and then the price minimises by 17% every year, what is it’s worth after 9 years?
Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
f = p * (1 + r) ^ n

f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.

in your problem:

f is what you wand to find.
p is 16,000
r is -.17% per year which is equal to -.17 per year.
n is 9 years.

formula becomes f = 16,000 * (1 - .17) ^ 9

solve for f to get f = 2991.04 rounded to 2 decimal places.

the value of the car is 2991.04 pounds after 9 years if it depreciates 17% per year.








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