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The equation representing the value of the car after 3 years can be expressed as v = $27,000 * (1 - 0.06)³, where v is the value of the car. What is the value of the car after 3 years?

User Tortoise
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Final answer:

The value of the car after 3 years, calculated using the depreciation formula, is $22,612.50.

Step-by-step explanation:

The value of the car after 3 years can be calculated using the provided equation v = $27,000 * (1 - 0.06)³. To find v, compute the depreciation rate (1 - 0.06) to the power of 3, and then multiply the result by the initial value of the car, which is $27,000.

First, calculate the depreciation rate: (1 - 0.06) = 0.94. Then, raise 0.94 to the third power: 0.94³ = 0.8375 (approximately). Finally, multiply this by the initial value of the car: $27,000 * 0.8375 = $22,612.50. Therefore, the value of the car after 3 years is $22,612.50.

User JanTheGun
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