Answer: after 6 years, the car's value will be less than $3,000.
Step by step explanation:
To solve this problem we need to determine how many years it will take for the car's value to drop below $3,000.
First, we can calculate how much the car will depreciate in one year by multiplying its value by the depreciation rate:
12,478 x 0.07 = 873.46
So after one year, the car will be worth:
12,478 - 873.46 = 11,604.54
We can continue this process to determine the value of the car after each subsequent year.
After two years:
11,604.54 x 0.07 = 812.32
11,604.54 - 812.32 = 10,792.22
After three years:
10,792.22 x 0.07 = 755.45
10,792.22 - 755.45 = 10,036.77
After four years:
10,036.77 x 0.07 = 702.57
10,036.77 - 702.57 = 9,334.20
After five years:
9,334.20 x 0.07 = 653.39
9,334.20 - 653.39 = 8,680.81
After six years:
8,680.81 x 0.07 = 607.66
8,680.81 - 607.66 = 8,073.15