Answer:
The amount lost over the 3 years s 2567.25£
Explanation:
[tex]$\mathrm{F}=\mathrm{I} \times\left(1-\left(\frac{r}{100}\right)\right)^{\mathrm{n}}$[/tex]
where F = final value after n years
I = initial value of the car in 2017 = £18000 (given)
Since the value is depreciated 5% every year for 3 years,
r = percentage rate of depreciation = 5% (given)
n = 3 years
Substituting these values in formula, we get
[tex]$\mathrm{F}=18000 \times\left(1-\frac{5}{100}\right)^{3}$[/tex]
=
[tex]$18000 \times\left(\frac{95}{100}\right)^{3}$[/tex]
= 15432.75£ which is the value of the car after 3 years
Finally 18000-15432.75 = 2567.25£ is the amount lost over this period.
