The price of a new car is #RM80000#. It is given that the price of the car depreciates at a constant rate if 5% yearly. Calculate the minimum number of years required for the price of the car to drop to less than #RM45000#.?
USE FORMULA : #T_n = ar^(n-1)#
USE FORMULA :
1 Answer
Explanation:
This is just the nth term of a geometric sequence.
If the car is depreciating at
Using this as our common ratio and expressing it in decimal form, and using
We need this to be less than 45000. First we solve for
Dividing by
Taking natural logarithms of both sides:
This is for equality, and we also need an integer value. We therefore go to the nearest integer greater than this:
So: