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A new car is purchased for dollar sign, 18, comma, 000$18,000 and over time its value depreciates by one half every 4 years. What is the value of the car 17 years after it was purchased, to the nearest hundred dollars?

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Final answer:

The value of the car 17 years after it was purchased is $600 ( to the nearest hundred dollars).

Step-by-step explanation:

To find the value of the car 17 years after it was purchased, we need to determine the depreciation rate.

The car depreciates by one half every 4 years, which means its value is reduced by half after every 4-year period.

Since 17 is not a multiple of 4, we need to divide it by 4 to determine the number of 4-year periods. 17 divided by 4 is 4 with a remainder of 1.

The car will undergo 4 complete 4-year periods of depreciation, reducing its value to half after each period. The initial value of the car is $18,000.

After 4 years, the value becomes $18,000 / 2 = $9,000.

After another 4 years, the value becomes $9,000 / 2 = $4,500.

After the third 4-year period, the value becomes $4,500 / 2 = $2,250.

After the fourth 4-year period, the value becomes $2,250 / 2 = $1,125.

After the 4 complete 4-year periods, there is still 1 year remaining.

The car will depreciate by half in this remaining year, reducing its value to $1,125 / 2 = $562.50.

To find the value to the nearest hundred dollars, we round $562.50 to the nearest hundred, which is $600.

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