document.write( "Question 1176659: A vehicle purchased for $20,700 depreciates at a constant rate of 5%. Determine the approximate value of the vehicle 12 years after purchase. Round to the nearest whole dollar.
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Algebra.Com's Answer #803853 by ikleyn(52781) $\"\"$ $\"About$

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document.write( "There are two commonly accepted ways to consider / solve the problems on depreciated values.\r\n" );
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document.write( "One way is to consider a linear model with the slope coefficient m = -0.05.\r\n" );
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document.write( "Another way is to consider exponential decrease of the depreciated value with the multiplication coefficient of (1- 0.05) = 0.95.\r\n" );
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document.write( "In the first case, the depreciate value of the car after 12 years is\r\n" );
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document.write( "    V = 20700 - 0.05*20700*12 = 8,280 dollars.\r\n" );
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document.write( "In the second case, the depreciate value after 12 years is\r\n" );
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document.write( "    V =  = 11,185 dollars.\r\n" );
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