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
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
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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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