Question

A new car is purchased for $40,000 and over time its value depreciates by one half

every 3 years. What is the value of the car 17 years after it was purchased, to the
nearest hundred dollars?

Answer 1

9514 1404 393

Answer:

$800

Explanation:

The value formula can be written ...

y = 40,000(1/2)^(t/3)

Using t=17, this becomes ...

y = 40,000(1/2)^(17/3) ≈ 800

The value of the car after 17 years is about $800.