You bought a sports car for $89,000. What will the car be worth after 10 years if the depreciation rate is 8%?
A. $38,660.57
B. $50,339.43
C. $82,130.93
D. $204,885.74

Question

You bought a sports car for $89,000. What will the car be worth after 10 years if the depreciation rate is 8%?
	A.	$38,660.57
	B.	$50,339.43
	C.	$82,130.93
	D.	$204,885.74

anonymous · Answer

A I believe...

anonymous · Answer

It will be A

anonymous · Answer

of course it wont be C OR D.

The calculation is extremely tedious actually.

But still; 

rate = 8% , and Principal = 89000, time (n) = 10 years.

We can use the normal compound interest formula

A = P(1-R/100)^n   (1-r/100 since its depreciation)

A = 89000(1-8/100)^10


=> 89000(1-2/25)^10

=> 89000(25-2/25)^10

=> 89000(23/25)^10 

which on solving(calculator) gives $38660.58

anonymous · Answer

anyway i dont have 89000$ as of now to buy any car. :P