Question

A car depreciates (loses value) at a rate of 4.5% annually. Greg
purchased a car for $12,500. Which equation can be used to
determine the value of the car, V, after 5 years?

Answer 1

any ideas?

Answer 2

USe future value equation ...FT=PT(1+rt)

Answer 3

use

V = 12,500(1 - r)^n
where r = annual rate of depreciation and n = number of years

Answer 4

r can be written as a decimal - i e 4.5 / 100 = .045 and n = 5