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The initial value of your new car was $20,000. After one year, the value of the car is $18,000.What will the approximate value of the car be in 7 years?$8,000.00O $8,565.94$9,000.00$9,565.94

Sagot :

Answer:

The approximate value of the car after 7 years is;

[tex]\text{ \$9,565.94}[/tex]

Explanation:

Given that the initial value of the car is;

[tex]P=\text{ \$20,000}[/tex]

after 1 year its new value is;

[tex]\text{ \$18,000}[/tex]

The rate of depreciation is;

[tex]r=\frac{18000}{20000}=0.9\text{ per year}[/tex]

After 7 years the value of the car can be calculated using the formula;

[tex]F=P(r)^t[/tex]

where t equals 7 years.

substituting the values;

[tex]\begin{gathered} F=20000(0.9)^7 \\ F=\text{ \$9,565.94} \end{gathered}[/tex]

Therefore, the approximate value of the car after 7 years is;

[tex]\text{ \$9,565.94}[/tex]

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