Question

question a new car is purchased for 23700 dollars. the value of the car depreciates at 13.5% per year. what will the value of the car be, to the nearest cent, after 10 years? answer attempt 2 out of 3 submit answer

Explanation:

Step1: Define depreciation formula

The exponential depreciation formula is $V(t) = P(1-r)^t$, where $P$ = initial value, $r$ = annual depreciation rate, $t$ = time in years.

Step2: Plug in given values

$P=23700$, $r=0.135$, $t=10$. So:
$V(10) = 23700(1-0.135)^{10}$

Step3: Calculate remaining value factor

$1-0.135=0.865$. Compute $0.865^{10} \approx 0.2130$

Step4: Compute final car value

$V(10) = 23700 \times 0.2130 \approx 5048.10$

Answer:

$\$5048.10$