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 1 out of 3 submit answer

Explanation:

Step1: Define decay formula

The exponential decay formula is $A = P(1-r)^t$, where $P=23700$, $r=0.135$, $t=10$.

Step2: Calculate remaining value factor

$(1 - 0.135) = 0.865$

Step3: Compute factor to the 10th power

$0.865^{10} \approx 0.1978$

Step4: Multiply by initial value

$23700 \times 0.1978 \approx 4687.86$

Answer:

$\$4687.86$