Question

William recently purchased a new car for $28,000. The car’s value depreciates 7% each year. What will be the value of the car 5 years after it was purchased? round to nearest dollar.

Answer 1

Answer:$18200

Step-by-step explanation:

Find the depreciating price after one year

7% of 28000

7/100* 28000=$1960 is the depreciating cost

Multiple the depreciating cost by 5 year

1960*5=9800

Actual cost - depreciating cost after 5 year

28000-9800= $18200