Answer:
The value of the car after 5 years is $ 13,035 to the nearest dollar.
Step-by-step explanation:
The formula for depreciation is
![V=P(1-r)^t](https://tex.z-dn.net/?f=V%3DP%281-r%29%5Et)
where
is the beginning price of the asset,
is the annual rate of depreciation written as a decimal,
![r=0.12](https://tex.z-dn.net/?f=r%3D0.12)
is the number of years, and V is the value after t years.
Now substitute all these values into the formula to get,
![V=24,700(1-0.12)^5](https://tex.z-dn.net/?f=V%3D24%2C700%281-0.12%29%5E5)
This simplifies to,
![V=24,700(0.88)^5](https://tex.z-dn.net/?f=V%3D24%2C700%280.88%29%5E5)
![\Rightarrow V=24,700(0.5277319168)](https://tex.z-dn.net/?f=%5CRightarrow%20V%3D24%2C700%280.5277319168%29)
![\Rightarrow V=13,034.97834](https://tex.z-dn.net/?f=%5CRightarrow%20V%3D13%2C034.97834)
The value of the car after 5 years is $ 13,035 to the nearest dollar.