Question

Your car cost $42,000 when you purchased it in 2015. The value of the car decreases by 15% once a year.

How much will your car be worth in 7 years? Round your answer to th nearest dollar.

Answer 1

A) $12,800.00. B) $13,629.44. The value of a car purchased for $20,000 decreases at a rate of 12% per year. What will be the value of the car after 3 years? C) ...

Answer 2

Explanation:

V = P(1 - r)^t

where V is the value of the car after t years, P is the initial value of the car, r is the annual depreciation rate as a decimal, and t is the number of years.

Plugging in the values given in the problem, we get:

V = 42000(1 - 0.15)^7

V = 42000(0.85)^7

V = 42000(0.327)

V = $13734.00

Therefore, the car will be worth $13,734.00 after 7 years. Rounded to the nearest dollar, the value is $13,734.