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A car valued at $ 600,000.00 depreciates by 10% each year. What will be the...

Mathematics
WAEC 2024

A car valued at $ 600,000.00 depreciates by 10% each year. What will be the value of the car at the end of two years? 

  • A. $ 120,000.00
  • B. $ 480,000.00
  • C. $ 486,000.00
  • D. $ 540,000.00
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Correct Answer: Option C
Explanation

Using P\(_n\) = P\(_o\)(1 - \(\frac{r}{100})^n\)

 = 600,000(1 - \(\frac{10}{100})^2\)

= 600,000(0.90)\(^2\) = $486,000.00


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