Question

The original purchase price of a car is $25,000. Each year, its value

depreciates by 13%. Three years after its purchase, what is the value of the
car?

Answer 1

$16,462.58

Step-by-step explanation:

100 - 13 = 87

So, then it becomes 87% of its value each year.

25000 * 0.87 = 21,750

21750 * 0.87 = 16,462.575

16,462.575 = $16,462.58 (round up)

Answer is $16,462.58

Answer 2

$16,462.58 (rounded from $16462.575)

Step-by-step explanation:

By subtracting 13%, you leave 87%, because
`100-13=87`.

So, the expression we need to simplify is
`25000 * 0.87^3`, because you need to multiply 25000 by 87% three times.

1. Find the exponent with a calculator.
   `25000 * 0.658503`
2. Multiply with a calculator.
   `16462.575`
3. Round your answer to the nearest cent.
   `16462.58`