Heh, when I think … Heh, when I think about it, it seems like it should be just x = 5450 * .93^8… That is, for every year, it is worth only 93% of the given value, or 7% less each year. That goes on for 8 years. The growth formula is so stuck in my head that I can’t decide now, so I think I’ll just wait to see what others say
Car Depreciation value problem
November 30th, 2008 at 5:47 am
This is not an …
This is not an exponential function OK?
November 30th, 2008 at 5:47 am
it is 3049.720863, …
it is 3049.720863, or simply $3049.72
November 30th, 2008 at 5:47 am
Assuming the …
uming the depreciation is applied 8 times:
$5450.00 x (0.93^8) = $3049.72
November 30th, 2008 at 5:47 am
Heh, when I think …
Heh, when I think about it, it seems like it should be just x = 5450 * .93^8… That is, for every year, it is worth only 93% of the given value, or 7% less each year. That goes on for 8 years. The growth formula is so stuck in my head that I can’t decide now, so I think I’ll just wait to see what others say
November 30th, 2008 at 5:47 am
Exponential decay …
Exponential decay formula:
final value in 2010 = initial*e^(-rt), r=rate,t=time
So, x = 5450*e^(-.07*8),
x = $3,113.09