A new car is purchased for 23200 dollars. The value of the car depreciates at 13.25% per year. What will the value of the car be, to the nearest cent, after 7 years?
A new car is purchased for 23200 dollars. The value of the car depreciates at 13.25% per year. What will the value of the car be, to the nearest cent, after 7 years?
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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![### Depreciation Calculation Problem
**Problem Statement:**
A new car is purchased for $23,200. The value of the car depreciates at a rate of 13.25% per year. What will the value of the car be, **to the nearest cent**, after 7 years?
**Answer Submission Box:**
- Below the problem statement, there is an answer submission box where you can input your computed car value.
**Answer Input:**
- A text box where you can enter your answer to the depreciation problem.
- A button labeled "Submit Answer" to submit your response.
**Attempt Information:**
- There is an indication that this is attempt 2 out of a possible 2 attempts.
**Note:** Ensure your answer is accurate to the nearest cent.
**Steps to Solve the Problem:**
1. **Identify the Initial Value (P)**: The car's initial value is $23,200.
2. **Depreciation Rate (r)**: The annual depreciation rate is 13.25%.
3. **Number of Years (t)**: The time period over which the depreciation is calculated is 7 years.
**Depreciation Formula:**
\[ V = P \times (1 - r)^t \]
Where:
- \( V \) = Value after t years
- \( P \) = Initial value (23,200)
- \( r \) = Depreciation rate (0.1325)
- \( t \) = Number of years (7)
**Calculation:**
\[ V = 23200 \times (1 - 0.1325)^7 \]
You should perform this calculation to find the car's value after 7 years, and input the result into the provided answer box. Make sure to round your final answer to the nearest cent before submission.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce901d6-1005-4fae-945e-8fe9887caefc%2Fdb82fc47-412a-4499-abaf-54210fed2c4d%2F9wseuxd_processed.png&w=3840&q=75)
Transcribed Image Text:### Depreciation Calculation Problem
**Problem Statement:**
A new car is purchased for $23,200. The value of the car depreciates at a rate of 13.25% per year. What will the value of the car be, **to the nearest cent**, after 7 years?
**Answer Submission Box:**
- Below the problem statement, there is an answer submission box where you can input your computed car value.
**Answer Input:**
- A text box where you can enter your answer to the depreciation problem.
- A button labeled "Submit Answer" to submit your response.
**Attempt Information:**
- There is an indication that this is attempt 2 out of a possible 2 attempts.
**Note:** Ensure your answer is accurate to the nearest cent.
**Steps to Solve the Problem:**
1. **Identify the Initial Value (P)**: The car's initial value is $23,200.
2. **Depreciation Rate (r)**: The annual depreciation rate is 13.25%.
3. **Number of Years (t)**: The time period over which the depreciation is calculated is 7 years.
**Depreciation Formula:**
\[ V = P \times (1 - r)^t \]
Where:
- \( V \) = Value after t years
- \( P \) = Initial value (23,200)
- \( r \) = Depreciation rate (0.1325)
- \( t \) = Number of years (7)
**Calculation:**
\[ V = 23200 \times (1 - 0.1325)^7 \]
You should perform this calculation to find the car's value after 7 years, and input the result into the provided answer box. Make sure to round your final answer to the nearest cent before submission.
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