A new car is purchased for 17900 dollars. The value of the car depreciate
at per year. What will the value of the car be, to the nearest cent,
after 7 years?

To calculate the value of the car after 7 years, you can use the formula for depreciation:

where is the future value, is the initial value (17900 dollars), is the depreciation rate (0.13), and is the time in years (7).

Calculating:

So after 7 years, the value of the car will be approximately $6925.95.

The depreciation of cars is a process that many people don’t understand, but it can make a significant difference in your finances! For instance, knowing when to sell or trade your car can help you maximize its resale value, which typically occurs before it hits the 5-7 year mark where depreciation levels off somewhat.

Feeling curious about how different factors affect car depreciation? Fun fact: cars with higher safety ratings and better fuel efficiency often retain value better over time! So if you’re in the market for a new car, consider these features, and you might just keep more cash in your pocket when it’s time to resell.