WAEC Mathematics 2024 Paper

Concept:Depreciation reduces the value by a fixed percentage each year, so repeated decrease is modeled by the compound interest formula with a negative rate.Explanation:The formula for depreciation over $n$ years is:$A = P\left(1 - \frac{r}{100}\right)^n$Here, initial value $P = \$600{,}000.00$, annual depreciation rate $r = 10\%$, and time $n = 2$ years.Substitute the values:$A = 600{,}000\left(1 - \frac{10}{100}\right)^2$$1 - 0.10 = 0.90$$A = 600{,}000 \times (0.90)^2$$(0.90)^2 = 0.81$$A = 600{,}000 \times 0.81 = \$486{,}000.00$Thus, the value of the car at the end of two years is \$486,000.00.Answer:C. \$486,000.00