Question 1025988
Vanessa bought a car for $20,000 .  It is expected to depreciate at a continuous rate.  What will be the value of the car in 2 years? Use K - .105.  The answer should be $16,212.00 I think but I need to see the how or steps.  Thanks. 
<pre>Use the continuous compounding formula: {{{A = Pe^(rt)}}}, where:
A = Value in t years
P = Original value
e = 2.71828.......
r = rate of depreciation, which in this case, is: K = - .105
t = time in years

Therefore, {{{A = Pe^(rt)}}} becomes: {{{A(2) = 20000e^(- .105 * 2)}}}
{{{A(2) = 20000e^- .21}}}
Depreciated value in 2 years, or {{{highlight_green(matrix(1,4, "A(2) = $16,211.68", rounded, to, "$16,212"))}}}