A used car was purchased in July 2000 for $11,900. If the car depreciates 13% of its value each year, what is the value of the car, to the nearest hundred dollars, in July 2003?
1 Answer
Explanation:
Original value depreciates by 13% annually. So for the 1st year, we have:
Factoring:
For the 2nd year:
For the 3rd year:
So this is following the pattern:
This is the same as:
This is for 3 years, so for
Since
From this we can derive the formula:
For the original problem: