The value of the car in 2012 is $42,889.68
Depreciation is the decrease in the value of a property. It means that the value of the car would decrease each year.
In order to determine the value of the car after a period of time, use this formula:
FV = P (1 - r)^n
- FV = value of the car in 2012
- P = value of the car in 2000 = $70,000
- R = rate of depreciation = 4%
- N = number of years = 12 years
$70,000 x (1 - 0.04)^12
$70,000 x (0.96)^12 = $42,889.68
A similar question was solved here: brainly.com/question/11560012
