Question

I need help with this... I dont know the formula.. :/

Answer 1

Tyler bought a car that depreciates 3.7% each year. If Tyler purchased the car for $21,450 five years ago, what is the value of the car now?

Answer 2

i know there is a formula to solve this.. but I cant find it ...

Answer 3

forget the formula ... since you already have.

how would you go about solving this without it?

Answer 4

if the car loses a % of its value each year ... what is its value after the first year?

Answer 5

substract the % for every year

Answer 6

20656.35
after the first year

Answer 7

good

y1 = $-$(%) = $(1-%)

y2 = $(1-%)-$(1-%)(%) = $(1-%)((1-%) = $(1-%)^2

y3 = ..... $(1-%)^3

....

yn = $(1-%)^n

Answer 8

but, i have a lot of problems like this one in my study guide... and i know there is a formula for this i jsut dont know wich one.. so I can know how to solve it for the test.. :/
that is too much work and i dont have that time when the test comes..

Answer 9

oh there it is :D thanks....

Answer 10

if you can generate the formula .. which is how it was created to begin with :) then you will never have to worry about forgetting it

Answer 11

yeah thats true.... :D wow I like that :D thankss

Answer 12

21,450(1-.037)^5 should be the specific solution here

god luck :)

Answer 13

good luck even lol

Answer 14

but in this case... n=5 years? or =60 months? cause normally in the excersises i have n=months...

Answer 15

depreciates 3.7% each year .... for 5 years

Answer 16

got it ... :) thxs again

Answer 17

its best to read these as "periods" as opposed to a specified term like month and year...

spose it said:depreciates 3.7% each year .... for 5 MONTHS

then the rate per period (each month) is .037/12 and the amount is

21,450(1-.037/12)^5

Answer 18

Well that depends on the question..if n is in months in your book then the question shall be like...depreciates x% per month...then in the formula you need to use n for months..but if its given depreciates by x% per year(or annum) then you got to take n as years

Answer 19

got it... :) thanks guys :)