C codenorth New member Joined Apr 20, 2014 Messages 2 Apr 20, 2014 #1 A used-car dealer sells a five-year-old car for $4200. What was the original value of the car if the depreciation is 15% a year?
A used-car dealer sells a five-year-old car for $4200. What was the original value of the car if the depreciation is 15% a year?
C codenorth New member Joined Apr 20, 2014 Messages 2 Apr 20, 2014 #2 I got 4200=No (.85)^5 so No = approx 9500 i just want to ask why cant it be 1.15 for the rate of change?
I got 4200=No (.85)^5 so No = approx 9500 i just want to ask why cant it be 1.15 for the rate of change?
R richardt Junior Member Joined Aug 27, 2013 Messages 56 Apr 20, 2014 #3 Greetings: If 4200 = A(1 + r)^5, then r = -15% = -0.15. Hence 1 + r = 0.85 Rich
