SOLUTION: A new motor home cost $89, 000. It is expected to depreciate 9% each year. Find the value of the motor home in 4 years. I have $61, 031 but I don't if it is right.

Algebra ->  Polynomials-and-rational-expressions -> SOLUTION: A new motor home cost $89, 000. It is expected to depreciate 9% each year. Find the value of the motor home in 4 years. I have $61, 031 but I don't if it is right.       Log On


   

Question 84258: A new motor home cost $89, 000. It is expected to depreciate 9% each year. Find the value of the motor home in 4 years. I have $61, 031 but I don't if it is right.
Answer by tutor_paul(519) About Me  (Show Source):
You can put this solution on YOUR website!
You just about got it right, but if you are rounding to the nearest dollar, it would really be $61032. But that is kinda nit-picky!
The equation is:
V=P%281-r%29%5En
V=89000%281-0.09%29%5E4
highlight%28V=61031.71%29
Good Luck,
tutor_paul@yahoo.com