The original purchase price of a car is $25,000. Each year, its valuedepreciates by 13%. Three years after its purchase, what is the value of thecar?
Accepted Solution
A:
Answer:$16,462.58 (rounded from $16462.575)Explanation:By subtracting 13%, you leave 87%, because [tex]100-13=87[/tex].So, the expression we need to simplify is [tex]25000 * 0.87^3[/tex], because you need to multiply 25000 by 87% three times.Find the exponent with a calculator. [tex]25000 * 0.658503[/tex]Multiply with a calculator. [tex]16462.575[/tex]Round your answer to the nearest cent. [tex]16462.58[/tex]