Answer:
$1400
Step-by-step explanation:
We are given the following from the question;
Cost price of the car = $45,000
If the value depreciates by one-half after 3.5years,;
Depreciation = 45000/2 = 22500
Value after 3.5 years = 45000 - 22500 = $22500
After another 3.5 years, it will reduce by one half again, the price will become;
After 7 years;
Price = 22500 - (0.5 * 22500)
Price = 225000 - 11250
Price = $11250 after 7 years
After 10.5 years(additional 3.5 years), the price will become;
Price = 11250 - (0.5*11250)
Price = 11250 - (5625)
Price after 10.5years = $5625
After 14years;
Price of the car will become = 5625 * 0.5 = $2,812.5
After 17.5years (additional 3.5years)
Price will reduce by one half again.
Price after 17.5years = $2,812.5*0.5
Price after 17.5years = $1,406.25
Hence the value of the car 17 years after it was purchased, to the nearest hundred dollars is $1400