Question

A new car is purchased for 23200 dollars. The value of the car depreciates at 13.25% per year. What will the value of the car be, to the nearest cent, after 7 years?

Answer 1

Answer:

The value of car after 7 years will be $8,577.77

Step-by-step explanation:

A new car is purchased for 23200 dollars.

Initial price of car, P = $23,200

The value of the car depreciates at 13.25% per year.

Rate of depreciation, r = 13.25% = 0.1325

Time of depreciation, t = 7 years

Formula:

$F=P(1-r)^t$

$F=23200(1-0.1325)^7$

$F=23200(0.8675)^7$

$F=23200\times 0.3697$

$F=8577.77$

Hence, The value of car after 7 years will be $8,577.77