Answer: the value of the car after 7 years is $11220
Step-by-step explanation:
The formula for determining depreciation is expressed as
A = P(1 - r)^t
Where
A represents the final value of the car after t years.
P represents the present value of the car.
r represents the rate of depreciation
t represents the number of years.
From the information given
P = 35000
r = 15% = 15/100 = 0.15
t = 7 years
Therefore,
A = 35000(1 - 0.15)^7
A = 35000(0.85)^7
A = 11220.198
Rounding up yo the nearest dollar, it becomes $11220
