HUH ?
each year new value = (1-r) * old value
so
final value C = v (1-r)^t
so
v = C / (1-r)^t
===================
v = 8019.60 / 0.90^10 = 8019.60 / 0.348678 = 23,000
The formula for the value of a car, C, after t years of depreciation of its initial value v at a rate of r is C=v(1−r)t.
A: How can you rewrite the formula to correctly isolate v?
B: What was the initial value of the car (to the nearest dollar) if it depreciated 10% each year for 10 consecutive years and has a current value of $8,019.60?
1 answer