The predicted value of the car in the year 2006 to the nearest dollar would be $651.
<h3>What is the predicted value of the car?</h3>
The first step is to determine the rate of depreciation
g = (FV/PV)^(1/n) - 1
Where:
FV = value of the car in 2001
PV = value of the car in 1993
n = number ofyears = 8
(2700/26,300)^(1/8) - 1 = -24.76%
Now determine the value of the car in 2006
2700x ( 1 - 0.2476)^5 = $651
To learn more about depreciation, please check: brainly.com/question/25552427
