Question

Lyle purchased a motorcycle for $13,430. It depreciates about 4.1% each year. What is the value of the motorcycle after seven years?

Answer 1

I started doing this and was on 13,430 +13,430(0.041) = 13,430 +550.03 = 13,980.03

Answer 2

and continued on

Answer 3

use the formula P(1-r)^n

\[ A= 13430\times(1-0.041)^7\]

you can do the calculation

Answer 4

i got 12,879.37 but it is not an option

Answer 5

I got $10018.60

Answer 6

how did you get that? I want to learn

Answer 7

look at the formula I entered above...

I used the compound interest formula... with r as a negative