Question

Kelly bought her car in 2013 for 28,000. Each year the car value depreciates by 16% in 7 years what could she sell the car for

Answer 1

$8,262.53

Explanation:

We can use the following formula to solve:

`A=P(1-r)^t`

P = principal value

r = rate (decimal)

t = time (years)

First, lets change 16% into a decimal:

16% ->
`(16)/(100)` -> 0.16

Now, plug in the values into the equation:

`A=28,000(1-0.16)^7`

`A=8,262.53`

The car will be worth $8,262.53