Stefan is buying a new car valued at $18,210. It is expected to depreciate an average of 14% each year during the first 4 years. What is the value of Stefan's car predicted to be in 4 years.

[tex] \bf \qquad \textit{Amount for Exponential Decay}
\\\\
A=P(1 - r)^t\qquad
\begin{cases}
A=\textit{accumulated amount}\\
P=\textit{initial amount}\to &18210\\
r=rate\to 14\%\to \frac{14}{100}\to &0.14\\
t=\textit{elapsed time}\to &4
\end{cases}
\\\\\\
A=18210(1-0.14)^4\implies A=18210(0.86)^4\implies A \approx 9961.018594 [/tex]

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psm22415 psm22415 · Answer 2 · 2022-02-11T05:53:20+01:00

The value of Stefan's car is predicted to be in 4 years is $9961.01.

Given

Stefan is buying a new car valued at $18,210.

It is expected to depreciate an average of 14% each year during the first 4 years.

What is depreciation?

A decrease in the actual cost is called depreciation.

The formula is used to calculate depreciation is;

[tex]\rm Amount =Principal \times (1-rate)^{time}[/tex]

Substitute all the values in the formula;

[tex]\rm Amount =Principal \times (1-rate)^{time}\\\\\rm Amount =18210(1-0.14)^4\\\\Amount = 18210(0.86)^4\\\\Amount= 9961.01[/tex]

Hence, the value of Stefan's car is predicted to be in 4 years is $9961.01.

To know more about Depreciation click the link given below.

https://brainly.com/question/3023490