A $40,000 car depreciates in value about 18% per year for the life of the car. Determine the value of the car after 7,8, and 9 years. What is the rate of decay?

Value after:

7 years = $9971.42

8 years = $8176.56

9 years = $6704.78

Rate of decay = 18%

Step-by-step explanation:

A $40,000 car depreciates in value about 18% per year for the life of the car.

Determine the value of the car after 7,8, and 9 years. What is the rate of decay?

The formula for Depreciation is

FV = PV( 1 - r)^t

Where

FV = Future value

PV = Present value = $40,000

r = Depreciation rate = 18% = 0.18

t = time in years

a) After 7 years

$40,000 (1 - 0.18)⁷

= $9971.4188227

= $9971.42

b) After 8 years

$40,000 (1 - 0.18)⁸

= $8176.5634346

= $8176.56

c) After 9 years

$40,000 (1 - 0.18)⁹

= $6704.7820164

≈ $6704.78

= $9971.42

The Rate of decay = 18%

i dont know

step-by-step explanation: