Question
A new car is purchased for 17900 dollars. The value of the car depreciate
at
after 7 years?
at
after 7 years?
Ask by Mckenzie Ortega. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The car will be worth approximately $6,752.86 after 7 years.
Solution
To find the value of the car after 7 years, we need to calculate the depreciation of the car over the years.
Given:
- Initial value of the car = $17900
- Depreciation rate = 13% per year
We can use the formula for depreciation to calculate the value of the car after 7 years:
Substitute the given values into the formula:
Now, we can calculate the value of the car after 7 years.
Calculate the value by following steps:
Calculate the value by following steps:
- step0: Calculate:
- step1: Subtract the numbers:
- step2: Convert the expressions:
- step3: Simplify:
- step4: Rewrite the expression:
- step5: Reduce the numbers:
- step6: Multiply:
The value of the car after 7 years will be approximately $6752.86 to the nearest cent.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Beyond the Answer
To calculate the value of the car after 7 years, you can use the formula for depreciation:
where
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.
