since it decreases by 22% each year, 78% of the previous years value will be maintained.
so you have
Value = 47000(.78)^n where n is the number of years.
so for the value to be zero dollars, we could set Value = 0 and solve for n
this causes a problem, since to solve
0 = 47000(.78)^n
n = log 0/log.78 , but log 0 is undefined, implying that n would be infinitely large
this makes sense, since as long as I have any amount left, 78% of it will still be some value
If I decide that a value of 49 cents is less than a Dollar, if we round to the nearest dollar, I get
.49 = 47000(.78)^n
I get n = appr. 46 years.
An car was purchased for $47000 and its depreciation value is 22% each year.
How long would it take the car to be worth nothing (zero dollars)?
Explain.
1 answer