00:01
Hi, so on january 2010, lucita bought a car for 25 grand.
00:06
It depreciates at a rate of 15 % per year, which equation can be used to find the value of the car in 2017.
00:16
Okay, so depreciates means subtraction, so we are subtracting 15%.
00:20
And i want to change percent to decimal, so i would divide this by 100.
00:24
Okay? the equation for it, all right, so 2017, is seven years after it.
00:33
So this is our time.
00:36
This is our original amount.
00:38
It's called the principal.
00:39
This is our rate.
00:41
Okay.
00:42
And since this is happening 15 % per year, this is getting compounded.
00:47
So this is compound interest.
00:49
So this is compound interest accumulation, which means what the answer is is equal to the principal, which is how much we start with, times one...