MATH SOLVE

3 months ago

Q:
# Alex purchased a new car for 28,000. The cars value depreciates 7.25% each year. What will be value of the car 5 years after it is purchased? Round your answer to the newest dollar

Accepted Solution

A:

If depreciation is 7.25% per year, then the common factor is (1-0.0725), or 0.9275.

Thus, the car's value after 5 years will be:

V = $28000(0.9275)^5 = $28000(0.6864) = $19218.86, or (to the nearest dollar) $19218 (answer)

Thus, the car's value after 5 years will be:

V = $28000(0.9275)^5 = $28000(0.6864) = $19218.86, or (to the nearest dollar) $19218 (answer)