The value of the car in year 10 is $1158.08
How to determine the car value in year 10?
From the table, we have the following points
(x, y) = (1,5000) and (2,4250)
Start by calculating the rate of depreciation using:
r = y2/y1
So, we have:
r = 4250/5000
Evaluate
r = 0.85
The value of the car in nth year is calculated using:
y = y1 * r^(n - 1)
For the 10th year, we have:
y = 5000 * 0.85^(10 - 1)
Evaluate the product
y = 1158.08
Hence, the value of the car in year 10 is $1158.08
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