WSA new car sells for $29,700. It exponentially depreciates at a rate of 6.35% to $24,300. How long did ittake for the car to depreciate to this amount? Round your answer to the nearest tenth of a year.PA-2450012671525710062 (0968

We can use the exponential decay formula to solve this problem:…

Answered: A new car sells for $29,700. It…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A new car sells for $29,700. It exponentially depreciates at a rate of 6.35% to $24,300. How long did it take for the car to depreciate to this amount? Round your answer to the nearest tenth of a year.