SOLUTION: Please solve the following word problem and show all work. Steven found that the value of his new car ic currently $31,200, but us expected to depreciate 6.9% per year. Based on

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Question 37116: Please solve the following word problem and show all work.
Steven found that the value of his new car ic currently $31,200, but us expected to depreciate 6.9% per year. Based on the rate of depreciation and using the general formula for exponential decay, , find the value of his car in 5 years.
Answer by mbarugel(146) (Show Source):
You can put this solution on YOUR website!
Hello!
In order to solve this, we only need to apply the formula you supplied. In your formula:
y = Value of depreciated asset (unknown)
c = Initial value of asset ( = $31,200)
r = Depreciation Rate ( = 6.9% = 0.069)
t = Number of years of depreciation
So we apply it:

SO the value of the car after 5 years is $21,822.42

I hope this helps!
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