Question

i need help with this 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?
a$13,112.07
b$9,575.59
c$10,018.58
d$17,792.26

Answer 1

You would use the formula

\[\Large FV = P(1+r)^t\]

FV = final value
P = initial value
r = rate of increase or decrease per year
t = time in years

Answer 2

initial value is $13,430, so P = 13,430

you have a depreciation of 4.1% so r = -0.041 (negative due to depreciation)

t = 7 years

Answer 3

does that help? or no?