Joshua just purchased a 4-year-old car for $12,000. He was told that this make and model depreciates exponentially at a rate of 5.8% per year. What was the original price to the nearest hundred dollars?

2 Answers
Feb 27, 2018

Answer:

#$15000#

Explanation:

After 4 years, the car is worth #$12000#.
Work backwards.

#3# #"years"=12000 xx 1.058= $12696#

#2# #"years"= 12696 xx 1.058= $13432.368#

#1# #"year"= 13432.368 xx 1.058= $14211.445344#

Original: #14211.445344 xx 1.058= $15035.709174#

to nearest #$100#
#=$15000#

-Fish

Feb 27, 2018

Write an equation to satisfy the word problem:

#12000=x(1-0.058)^(4)#

Solve:

#0.7874x=12000#

#x~~15240.03#

The price was approximately #$15240.03#, and to the nearest hundred dollars is #$15200#.