Example 4
- Author:
- Walch Education
Depreciation on an automobile can be determined by the formula V = C (1 − r)t, where:
V = the value of the car after t years
C = the original cost
r = the rate of depreciation
t = time in years
If a car’s cost, when new, is $15,000, the rate of depreciation is 30%, and the value of the car now is $3,000, how old is the car? Round to the nearest tenth of a year.
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