Answer:
$4,116
Step-by-step explanation:
Worth of Mike's car at the start of 2014 = $12,000
If the car is said to depreciates every year by 30% = 30/100 = 0.3
The worth of the car at the start of 2017 is what we are to determine.
This means that the car depreciated by 30% (0.3) for 3 years since 2014 (2017 - 2014 = 3 yrs)
The worth at the start of 2017 would be calculated as follows:
12,000 × (1 - 0.3)³
= 12,000 × (0.7)³
= 12,000 × 0.343
= 4,116
Worth of the car at the start of 2017 would be $4,116
