Given :
A new car depreciates each year by 2.8%. When the car is 8 years old, it has a value of $42,547.24.
To Find :
The car’s original value.
Solution :
Formula of car depreciation is :
[tex]A= P( 1- \dfrac{R}{100})^n\\\\42547.24 = P( 1 - \dfrac{2.8}{100})^8\\\\42547.24 = P\times 0.8\\\\P = \dfrac{42547.24}{0.8}\\\\P = \$53184.05[/tex]
Hence, this is the required solution.
