question 7 of 10\nthe original value of a car is $22,000, and it depreciates (loses value) by 15% each year…

question 7 of 10\nthe original value of a car is $22,000, and it depreciates (loses value) by 15% each year. what is the value of the car after three years?\n\na. $56,595\nb. $13,510.75\nc. $74.25\nd. $15,895

question 7 of 10\nthe original value of a car is $22,000, and it depreciates (loses value) by 15% each year. what is the value of the car after three years?\n\na. $56,595\nb. $13,510.75\nc. $74.25\nd. $15,895

Answer

Explanation:

Step1: Calculate the depreciation factor

The car depreciates by 15% each year, so the value of the car each year is 100% - 15% = 85% or 0.85 of the previous - year's value.

Step2: Calculate the value after 3 years

The formula for the value of the car $V$ after $n$ years with an initial value $V_0$ and a depreciation factor $r$ is $V = V_0\times r^n$. Here, $V_0=$22000$, $r = 0.85$, and $n = 3$. $V=22000\times(0.85)^3$ $V = 22000\times0.614125$ $V=13510.75$

Answer:

B. $13,510.75$