Question

Ed's new car has a value of $23,500, but it is expected to depreciate at a rate of 7.5% per year. What is the value of Ed's car after 7 years? Round to the nearest dollar, as needed.
$0
$142,162
$13,616
$14,720

Answer 1

Answer:

$13,616

Step-by-step explanation:

For each year we will have to constantly decrease it by 7.5%

23,500 - 7.5%

= 21,737.5

= 21,737.5 - 7.5%

= 20,107.1875

= 20,107.1875 - 7.5%

= 18599.1484375

= 18599.1484375 - 7.5%

= 17204.2123047

= 17204.2123047 - 7.5%

= 15913.8963818

= 15913.8963818 - 7.5%

= 14720.3541532

= 14720.3541532 - 7.5%

= 13616.3275917

Definitively we will get the answer $13,616