Question

the depreciated value, V, of a car can be calculated using V = C91-r)^n, where C is the original value, r is the rate of depreciation per yeat and n is the age of the car in years. how long would it take for a $24,000 car to be reduced to a value of $2500 if the car is depreciationg at a rate of 15% per year?

Answer 1

just plug in your values:

24000(1-0.15)^n = 2500

Now solve for n. First step is

.85^n = 2500/24000