Question

6 formula 2.5 points tom spent $28,000 for a new car. the car will depreciate 10% each year. what will the car be worth after 3 years? round your answer to the nearest cent. do not include the dollar sign in your answer. answer

Explanation:

Step1: Identify the depreciation formula

The formula for exponential depreciation is $A = P(1 - r)^t$, where $P$ is the principal amount, $r$ is the rate of depreciation (in decimal), and $t$ is the time in years. Here, $P = 28000$, $r = 0.10$ (since 10% = 0.10), and $t = 3$.

Step2: Substitute values into the formula

Substitute the values into the formula: $A = 28000(1 - 0.10)^3$. First, calculate $(1 - 0.10) = 0.90$. Then, raise 0.90 to the power of 3: $0.90^3 = 0.90\times0.90\times0.90 = 0.729$. Now, multiply this by 28000: $28000\times0.729 = 20412$.

Answer:

20412.00