Answer:
The value of car after 7 years will be $8,577.77
Step-by-step explanation:
A new car is purchased for 23200 dollars.
Initial price of car, P = $23,200
The value of the car depreciates at 13.25% per year.
Rate of depreciation, r = 13.25% = 0.1325
Time of depreciation, t = 7 years
Formula:
[tex]F=P(1-r)^t[/tex]
[tex]F=23200(1-0.1325)^7[/tex]
[tex]F=23200(0.8675)^7[/tex]
[tex]F=23200\times 0.3697[/tex]
[tex]F=8577.77[/tex]
Hence, The value of car after 7 years will be $8,577.77
