Question

The formula for finding the present value of an item that depreciates yearly is v=c-crt. In this formula, v is the present value, c is the original cost, r is the rate of depreciation per year, and t is the number of years that have passed. After 1 years, what is the value of a car originally costing 26,000 that depreciated at a rate of 0.1 per year?

Answer 1

what is rt?

Answer 2

I guess the rate

Answer 3

The rate r is depreciation per year, which is given as __
The time t is 1 year.

Answer 4

That's exactly how the problem is written.

Answer 5

I think you can solve this problem, if I help you. I know I can solve it.

Answer 6

I don't know how to start it

Answer 7

I mean I tried to plug things in though

Answer 8

The rate r is depreciation per year, which is given as __
is that a percent, or a decimal? Usually it would be given as a percent

Answer 9

Let's assume it's 10% per year, r = 0.1
OK?

Answer 10

How many years does the problem ask you to calculate ?

Answer 11

ok

Answer 12

After 1 years, what is the value of a car originally costing 26,000 that depreciated at a rate of 0.1 per year?

Answer 13

So how many years is that?

Answer 14

10%?

Answer 15

1 year.

Answer 16

If r = 0.1 and t = 1, what is rt = ?

Answer 17

So now I'd like to factor the equation you were given
v=c-crt
v = c(1 - rt)
We just found that rt = 0.1.
c = 26000
can you do the rest?

Answer 18

23400 is answer

Answer 19

Sounds correct to me.

Answer 20

Thank you !