Question

The original purchase price of a car is $25,000. Each year, its value
depreciates by 13%. Three years after its purchase, what is the value of the
car?

Answer 1

Answer:

$16,462.58 (rounded from $16462.575)

Explanation:

By subtracting 13%, you leave 87%, because $100-13=87$.

So, the expression we need to simplify is $25000 * 0.87^3$, because you need to multiply 25000 by 87% three times.

1. Find the exponent with a calculator. $25000 * 0.658503$
2. Multiply with a calculator. $16462.575$
3. Round your answer to the nearest cent. $16462.58$

Answer 2

Answer:

$16,462.58

Step-by-step explanation:

100 - 13 = 87

So, then it becomes 87% of its value each year.

25000 * 0.87 = 21,750

21750 * 0.87 = 16,462.575

16,462.575 = $16,462.58 (round up)

Answer is $16,462.58