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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.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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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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