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A car was valued at $42,000 in the year 1994. The value depreciated to $10,000 by the year 2006. Use the compund interest formula S = P(1+r) to answer the following questions. A) What was the annual rate of change between 1994 and 2006? T = Round the rate of decrease to 4 decimal places. B) What is the correct answer to part A written in percentage form? T = %. C) Assume that the car value continues to drop by the same percentage. What will the value be in the yea 2009? value = $ Round to the nearest 50 dollars.

A car was valued at $42,000 in the year 1994. The value depreciated to $10,000 by the year 2006. Use the compund interest formula S = P(1+r) to answer the following questions. A) What was the annual rate of change between 1994 and 2006? T = Round the rate of decrease to 4 decimal places. B) What is the correct answer to part A written in percentage form? T = %. C) Assume that the car value continues to drop by the same percentage. What will the value be in the yea 2009? value = $ Round to the nearest 50 dollars.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A car was valued at $42,000 in the year 1994. The value depreciated to $10,000 by the year 2006. Use the compund interest formula S = P(1 + r) to answer the following questions. A) What was the annual rate of change between 1994 and 2006? 7 = Round the rate of decrease to 4 decimal places. B) What is the correct answer to part A written in percentage form? 7 = %. C) Assume that the car value continues to drop by the same percentage. What will the value be in the year 2009 ? value = $ Round to the nearest 50 dollars.
Transcribed Image Text:A car was valued at $42,000 in the year 1994. The value depreciated to $10,000 by the year 2006. Use the compund interest formula S = P(1 + r) to answer the following questions. A) What was the annual rate of change between 1994 and 2006? 7 = Round the rate of decrease to 4 decimal places. B) What is the correct answer to part A written in percentage form? 7 = %. C) Assume that the car value continues to drop by the same percentage. What will the value be in the year 2009 ? value = $ Round to the nearest 50 dollars.
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