Answer:
14.6 years
Explanation:
Applying an early depreciation rate 'r = 18%', the value of an automobile originally valued at $18,000, after 't' years, is given by:
[tex]V(t)=\$18,000*(1-r)^t}[/tex]
The number of years required for which V(t) = $1,000 is:
[tex]\$1,000=\$18,000*(1-0.18)^t\\ln(\frac{1,000}{18,000})=t*ln(0.82)\\ t=\frac{ln(0.05555555)}{ln(0.82)} \\t=14.6\ years[/tex]
It will take 14.6 years for the value of the automobile to decrease to $1,000.
