U"A Cars Value Depreciates By 12% Every Year. If A New Car Costs 750,000, What Woult Its Value Be After 5 Years"

a cars value depreciates by 12% every year. If a new car costs 750,000, what woult its value be after 5 years

 

Answer:

The cars value after 5 years of depreciation at rate 12% is 449,775.

Step-by-step explanation:

Appreciation or increasing annual value: 1 + r

Depreciation or decreasing annual value: 1 - r

Present Value: 750,000, a₁

Rate of depreciation: 12% or 0.12

Period: 5 years, n=5

Depreciated amount after 5 years: an or a₅

an = a₁(1 - r)ⁿ⁻¹

a₅ = 750,000 (1 - 0.12)⁵⁻¹

a₅ = 750,000 (0.88)⁴

a₅ = 750,000 (0.5997)

a₅ = 449,775

The cars value after 5 years of depreciation at rate 12% is 449,775.


Comments

Post a Comment

Popular posts from this blog

Importance Of Physics In Our Daily Life?

Importance of physics in our Daily life?   Importance of physics in our Daily life: *Electrical Energy - it is only due to physics. We cannot image the life without electricity. *Evaporation - the formation of clouds in nature is based on the physical phenomenon. *Physics is also applied in our body - due to electrical signals, which carry the sensation, to mind, we are able to see, listen or to feel the objects.     In the cooking of the vegetables , some of the physical laws work. Even we choose the metal of the utensil on the behalf of physics.    We generally use water as a coolant or as a heating liquid due to the high specific heat of water. Physics also explains the several form of energy and their transformation. Such as kinetic energy, potential energy, nuclear energy, etc. Even in the growing of plants the osmosis is used and the photosynthesis is used which is also explained by the physics. Physics gave us very important inventions such as cars, bikes, watche...
Read more

The Set Of All Contries In The World. Is It Finite Set Or Infite Set? Why Or Why Not?

The set of all contries in the world. Is it Finite Set or Infite Set? Why or Why not?   Answer: Finite Step-by-step explanation: Because finite can be listed or said by a particular person about a particular thing like countries. You can search all the countries in the world and write it as a set, in an alphabetical order or not. Thats just my opinion but the meaning of finite is correct.
Read more