Find Depreciation of Car after 5 years Word Problem Solution MCR3U
Anil Kumar・2 minutes read
The car, purchased for $25,000, depreciated to $11,192.63 after five years using the formula for exponential decay. An alternative method of creating a table to deduct 15% annually aimed to help those struggling with mathematical concepts.
Insights
- Using the formula for exponential decay, the car's value after five years was calculated to be $11,192.63, starting from the initial purchase price of $25,000 with a 15% annual depreciation rate.
- An alternative approach suggested creating a table to deduct 15% of the car's value annually, catering to students who may struggle with mathematical formulas and offering a more practical method to solve the problem.
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Recent questions
What is exponential decay?
Exponential decay is a process where a quantity decreases at a constant percentage rate over time.
How can I calculate depreciation?
Depreciation can be calculated by subtracting a percentage of the original value each year.
What is an alternative method for exponential decay?
An alternative method for exponential decay involves creating a table of values and deducting a percentage annually.
How do I find the value of an item after depreciation?
To find the value of an item after depreciation, apply the depreciation rate to the original value over the given time period.
Why is exponential decay used in finance?
Exponential decay is used in finance to model the decrease in value of assets over time due to factors like wear and tear or obsolescence.
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Summary
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Car Value Depreciation Calculation Simplified for Students
- The car was purchased for $25,000 with a depreciation rate of 15% annually. To find its value after five years, the formula for exponential decay was applied, resulting in a final value of $11,192.63.
- An alternative method suggested for those unfamiliar with the formula involved creating a table of values, deducting 15% of the car's value annually. This method aimed to assist students who may have forgotten mathematical concepts, providing a practical approach to solving the problem.
