Example 4

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.
This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit www.walch.com for more information.