Compound interest formula pre calc please help?

Stephanie

Member
Joined
May 11, 2008
Messages
765
Reaction score
0
Points
16
A car was valued at $45,000 in the year 1992. The value depreciated to $14,000 by the year 2003.

Use the compund interest formula S= P (1+r) ^ t to answer the following questions.

A) What was the annual rate of change between 1992 and 2003?
r=_________ Round the rate of decrease to 4 decimal places.


B) What is the correct answer to part A written in percentage form?
r=_____ %.


C) Assume that the car value continues to drop by the same percentage. What will the value be in the year 2006 ?
 
Back
Top